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WHAT IS A TRUST DEED?

Protected Trust Deeds

A Protected Trust Deed is a legal arrangement between you and your creditors, which gives you
protection from creditors taking action against you to recover debts. (This is only available to Scottish Residents)

Once a Trust Deed has been established and is protected, creditors cannot add contractual interest or
charges to any of your outstanding debt. This means that at the end of the 4 year arrangement if you have made all your payments then any remaining debt on your account is written off allowing you to start fresh.

CRITERIA TO QUALIFY FOR A PROTECTED TRUST DEED

In order to qualify for a Protected Trust Deed in Scotland, you must be a Scottish resident for at least 6 months and have unsecured debts of over £5,000.

ADVANTAGES

DISADVANTAGES

  • If you are a homeowner and have equity in your home this must be released to pay to your creditors. There are ways to do this without the need to sell your home, for example by re-mortgaging or by a third party or family member making payments on your behalf. Alternatively it may be possible to extend your monthly contribution payments at the end of the Trust Deed
  • Creditors can vote against a Trust Deed becoming “Protected”
  • There are certain professional bodies, which prevent members from signing a Trust Deed.
  • You may find it difficult to obtain credit in the future. Credit reference agencies will assess the level of risk based your on financial history which may include the Trust Deed
  • Entering into an IVA, debt relief order or a protected trust deed means that your details will be entered onto a public register. Your credit file will be affected for a minimum of 5 years
  • A Trust Deed is only available to residents living in Scotland. If you’re currently living England, Wales and Northern Ireland you may be eligible for a IVA
  • There are restrictions on certain items of expenditure for a person in a Trust Deed

DEBTS THAT CAN BE CONSIDERED IN A TRUST DEED

TRUST DEEDS HELP & ADVICE?

A Trust Deed is only available to residents living in Scotland. If you’re currently living England, Wales and Northern Ireland you may be eligible for an IVA.
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