A Trust Deed is an alternative to Sequestration for Scottish residents, set up by the Government to help people in financial difficulty. It is a legally binding contract between you and your creditors, this means that once it is protected you should not be contacted by them regarding payment of the debt as long as you keep up with the agreed payments.
- A single affordable monthly payment over a fixed repayment period (usually no more than 36 months).
- An agreement that your creditors will freeze the interest and stop any charges so your debt balance does not increase.
- Protection from further action by your creditors.
- On completion your creditors legally write off any debt outstanding. (subject to conditions)
- Should the Trust Deed fail, the debtor can be petitioned for sequestration.
- You may be required to introduce a proportion of your properties equity into the Trust Deed, usually in the first or third year.
- 50% in number of the creditors or a third of the value of your debt must not object or the Trust Deed will not proceed.
- There are restrictions to certain types of expenditure allowed.
- The Supervisor must be advised of any changes in your circumstances that arise during the Trust Deed.
- Depending on the level of overtime or bonuses an individual receives, they will be expected to contribute all of this towards the Trust Deed.
Terms & Conditions apply. Third party specialists may be used.