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5 Local Offices
Established over 25 Years
Lower your Monthly Payments
Write off a Proportion of your Debt
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Write off a Proportion of your Debt
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Disadvantages of a Scottish Trust Deed

Trust Deed

David Tannock - 14th February 2025 - 2 minutes to read

Fees apply. May not be suitable in all circumstances. Your credit rating may be affected.

MoneyHelper is a free independent service available to customers offering debt counselling, debt adjusting and providing of credit information services.

What are some of the drawbacks of a Trust Deed?

If you’re a Scottish resident struggling under the weight of personal debts, there are a number of solutions available to you to help you get back on your feet. One of the most common debt-help agreements is a trust deed, and its popularity is largely due to the number of advantages that this process brings.

However, as with all debt solutions, there are also a number of drawbacks to a trust deed depending on your individual situation. Before going ahead with any debt remedy process it’s important to recognise the disadvantages which come with it and not be swayed or deterred until understanding the whole picture of what is right for your given circumstances.

You can speak with a specialist debt advisor at Scotland Debt Solutions for more information on the pros and cons of Scottish trust deeds and discover whether this could be a suitable solution to your debt worries. If not, our experienced team can help shed more light on alternative processes, such as sequestration or a DAS, which may be more appropriate.

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Here are some trust deed disadvantages that you should know about:

A trust deed may affect your job or employment position
Your details are entered on a public register known as the Register of Insolvencies which can be accessed and searched by anyone
If you fail to comply with the terms of your trust deed, the Trustee can arrest your earnings, petition the court for your sequestration (bankruptcy), or fail to provide you with your discharge certificate
Trustee can raise legal action to force sale of your property should you fail to comply with the terms agreed regarding your share of the equity in your home
Cannot exclude assets from the trust deed with the exception of your home (subject to consent of secured creditor)
Will have a negative impact on your credit rating
Depending on who does your trust deed you may still receive calls and letters. By taking out a trust deed with Scotland Debt Solutions, however, we can help stop these phone calls and letters from those you owe money to. We will take responsibility for liaising with your creditors and letting them you that you have entered into a Trust Deed, and that all further communication must go through us.

David Tannock

Debt Adviser

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Sequestration

Sequestration is the Scottish version of bankruptcy and may be suitable for you if you do not have the money to pay back your debts

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Trust Deeds in Scotland

A Trust Deed involves making a monthly contribution to your debts for up to four years. After this time any remaining debt included in the Trust Deed will not need to be paid.

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Debt Arrangement Scheme (DAS)

A Debt Arrangement Scheme (DAS) lets you pay off your debt through a series of manageable instalments over a reasonable length of time.

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Business Debts in Scotland

Whether you are a sole trader or a limited company director, we can help you work through your current financial problems including money owed to HMRC

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Our Insolvency Practitioners are regulated by ICAS or the IPA and our firm is authorised and regulated by the Financial Conduct Authority

We have FCA authorisation for advice relating to Debt Arrangement Schemes and we are regulated by the ICAS and IPA when giving advice as an insolvency practitioner leading to our appointment in formal insolvency proceedings

Fees and Information: There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.