Trust Deed

Become debt free in 4 – 5 years

A Trust Deed is an agreement with your lenders that could help you if you don’t think you can afford to repay everything you owe.

You agree to repay as much as you can towards your unsecured debts – normally for four years – and at the end of that time, any remaining unsecured debt is written off.

Advantages of a Protected Trust Deed.

Lower monthly repayments
Protected against further action from lenders
Frozen interest and charges
No more creditor communication (this will be handled for you)

Disadvantages of a Protected Trust Deed.

PTDs are listed on the public insolvency register
Your credit file may be affected for up to 6 years
Homeowners may need to release equity from their homes
Failure to pay the Trust Deed could result in further action being taken like Bankruptcy

How does a Trust Deed work?

Step 1

We prepare your case for an Insolvency practitioner

Step 2

The insolvency practitioner will prepare & present your case to creditors

Step 3

Unsecured debt repayments will be replaced with one affordable monthly payment (if you gain approval from at least 50% of lenders)

Example Trust Deed

* This is an example illustration of a typical Trust Deed. We assess each customer individually based on their circumstances and payments are based on what is affordable.

Illustrative example based on a typical client, who has no equity in their home, owing £16,300 of unsecured debt on a four-year Trust Deed. Fees include VAT where applicable.

Here is an example of a typical Trust Deed:

Credit Card	£7,500
Credit Card	£3,800
Loan	£3,200
Store Card	£1,800

Outstanding Debt

£16,300

Total Debt Before Trust Deed

£8,208

Total Repayable During Trust Deed

Monthly Repayments

£520

Repayments Before Trust Deed

£170

Repayments Before Trust Deed

Is a Trust Deed right for me?

You may qualify for a trust feed if you meet the following criteria:

You are based in Scotland.
You have unsecured debts that total more than £6,000
You can’t afford to repay within a reasonable period
You can still afford to make regular monthly payments towards your debts

There are some things to consider before entering into an Trust Deed

Details of your Trust Deed will be added to the Register of Insolvencies
Your Credit rating will be affected due to you not making contractual payments to your creditors.
Debts not included in the Trust Deed will remain outstanding
Creditors do have guidelines for allowances which can restrict your expenditure.
Creditors do not need to approve the Trust Deed, some creditors may reject it.
If the Trust Deed fails, you could face sequestration and interest that was suspended could be added to your debt

A Trust Deed could make your debts affordable again, and write off the unsecured debt you can’t afford after three years. You’ll also be protected against further action from your lenders.