Scottish Trust Deeds
For more detailed information about Trust Deeds, read our Protected Trust Deeds section.
What is a Scottish Trust Deed?
A Scottish Trust Deed is a formal but voluntary agreement with your Creditors where you are allowed to obtain relief from your debts after a fixed period of time, even if you have not repaid them all. A Trust Deed is only available to residents of Scotland, hence why it is sometimes referred to as a Scottish Trust Deed.
You only pay what you can afford each month and after the agreed payment period, the Trust Deed ends and a substantial amount of your debt will be written off.
There are no upfront fees and admin costs are recovered from your monthly contributions, so there are no lump sum charges when you enter a Scottish Trust Deed.
How does a Trust Deed become a Protected Trust Deed?
To enter a Trust Deed in Scotland, you need a licensed Insolvency Practitioner to work out how much you can afford to pay each month towards your debts, after covering essentials. This may include realising the value of any assets you have that are not protected by law- so, for example, you may have to release equity in your home. Remember though, equity release does not mean selling your home- you are simply using the value of it to help pay off your debts.
Once your Trustee has worked all this out, they send a proposal to your creditors. If they agree to it, then your Scottish Trust Deed becomes a Protected Trust Deed and you’ve started on the path to clearing your debts. One thing to bear in mind is that your credit rating may be affected, although if you are in debt it is likely to already have been affected.
If you live in Scotland and you think a Scottish Trust Deed sounds right for you then apply online or call Your Debt Expert on 0808 2020 225 to speak to our Trust Deeds Scotland team. Our debt advice is no obligation and we offer the full range of debt solutions, so we can promise to find the right one for you.
Why should I enter into a Scottish Trust Deed?
How does a Protected Trust Deed work in Scotland?
