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.
- Lower monthly repayments
- Protected against further action from lenders
- Frozen interest and charges
- No more creditor communication (this will be handled for you)
If you are struggling with your repayments are you live in Scotland then a Trust Deed could be the right solution for you.
Speak to one of our qualified advisers today to see if you qualify for a Trust Deed.
Call 0161 9627061 or complete and submit the debt help form.
How does a Trust Deed work?
- StepWe prepare your case for an Insolvency practitioner
- StepThe insolvency practitioner will prepare & present your case to creditors
- StepUnsecured debt repayments will be replaced with one affordable monthly payment (if you gain approval from at least 50% of lenders)
Example Trust Deed
Here is an example of a typical 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.
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.
Trust Deed fees
There is a monthly fee payable if you enter a Trust Deed. This won’t affect the amount you pay each month, because you’ll only ever be expected to pay as much as you can reasonably afford. Fees vary depending on several factors, so we’ll tell you how much it comes to when your Trust Deed proposal is put together.