Debt Management for Scotland
If you are a resident of Scotland and have debts greater than £5,000, a Trust Deed could be the best option to help clear your debts. Like an IVA, Trust Deeds are government-backed schemes to help you become debt free in a fixed time period - which is usually 36 months.
A Trust Deed is a formal arrangement based on a proposal by a debtor to their creditors to clear their debt. Trust Deeds are only used in Scotland, and are the Scottish equivalent to an Individual Voluntary Arrangement (IVA). Trust Deeds are regulated by the The Bankruptcy (Scotland) Act 1985.
Do You Qualify For A Trust Deed?
To qualify for a Trust Deed, your total debt must exceed £5,000 and you must owe to at least two different creditors (different banks, credit card companies etc.). There is no upper limit to the level of debt accepted in a Trust Deed. Only residents of Scotland can apply for a Trust Deed. For residents of England, Wales or Northern Ireland, the equivalent is an Individual Voluntary Arrangement (IVA)which we can also arrange. If your debts are less than £5,000 but greater than £3,000 you can apply for a Debt Management Plan. In all cases, please complete our contact form.
A Trust Deed Can Help You Avoid Sequestration
There is no stigma associated with a Trust Deed and there is no requirement to publish your details which is not the case with sequestration.
Unlike sequestration, you can still hold public office duties whilst under a Trust Deed. A Trust Deed is also cheaper to administer.
Trust Deed Frequently Asked Questions:
1) Will interest on my debts be frozen?
No, however any interest payments are included in the ‘agreed’ monthly payment and after 36 months any existing debt is written-off.
2) How long will it take to become debt free?
A Trust Deed agreement guarantees you to be debt free within 36 months.
3) What is a Protected Trust Deed?
Protecting’ a Trust Deed means that no further action can be taken against you by your creditors for recovery of the money you owe them. Lenders have to accept the balance of your Trust Fund account as full and final settlement at the end of the three year period.
4) What type of debts can be included in a Trust Deed?
The type of creditors that can be included are: banks, finance companies, credit card companies, store card companies and the Inland Revenue. Mortgages and loans secured on your property cannot be included.
For any other questions, please complete our contact form for a no-obligation call from our debt advisors.