A Trust Deed is a legally binding agreement between you and your creditors, via an Insolvency Practitioner, were you agree to pay an affordable monthly payment over an agreed period (normally 36 months). 

Providing the trust deed meets certain conditions it can be recorded in the Register of Insolvencies as a Protected Trust Deed.

When a Trust Deed becomes Protected, no further action can be taken against you by your creditors for the recovery of the money you owe them and providing you adhere to the conditions of the Trust Deed the balance of any unsecured debts can be written off after successful completion.

The Main Advantages Are:

• The pressure of being in debt is reduced as all correspondence from your creditors are handled by the Trustee.
• All interest and charges are frozen.
• You make affordable monthly payments over the period (usually 36 months).
• Up to 90% of your debt can be written off.

The Main Requirements of a Trust Deed Are:

• You need to have a regular income to be able to make the monthly payments.
• They are usually suitable for individuals who have debts of more than £10,000.
• You need to realise as much of the equity as possible from your home to qualify and our advisers can help you with this.

The Disadvantages of A Trust Deeds Are:

• Existing arrestments and diligence continue to be effective.
• The Insolvency Practitioner can petition for your sequestration if you fail to adhere to the agreement or if it is in the best interest of your creditors.

Due to the complexity and potential issues surrounding Trust Deeds, it is important to ensure that you receive accurate information and advice from qualified individuals. We will only involve fully qualified, professional and sympathetic Insolvency Practitioners who are able to provide up to-date and accurate information to our clients

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© > DAS The Debt Advisory Service (Scotland) Ltd 2006