Trust Deed

Scottish Trust Deeds help people in serious financial difficulty to repay a proportion of their debt and avoid having to enter sequestration.

The re-opening of Trust Deeds has become a contentious issue in Scotland. Debtors who assumed that, having been discharged from their Trust Deed, no further action would be taken in relation to their insolvency.

If you live in Scotland and are finding it difficult to keep up with debt repayments, you may be eligible to enter a Scottish IVA (Individual Voluntary Arrangement).

The strict criteria applied by mortgage lenders make it difficult to obtain borrowing, even for those with a good credit rating. If you’ve entered into an Individual Voluntary Arrangement in Scotland, or a Trust Deed, unfortunately you won’t have access to borrowing until its completion.

Part of an insolvency practitioner’s duties in administering your Trust Deed is to establish eligibility to claim PPI.

If you’re a Scottish resident struggling with personal debt and you’re considering a trust deed or sequestration as possible solutions, it’s important to realise that some types of debts cannot be managed within a formal insolvency procedure.

Less serious than sequestration (bankruptcy), a trust deed is a formal payment plan which allows you to take control of your debts in an affordable manner.

If you’re worried that the council might take action against you for non-payment of council tax, entering into a Scottish trust deed can be a beneficial step.

An Individual Voluntary Arrangement (IVA) is a formal agreement between you and your creditors. It is negotiated and set up by a licensed Insolvency Practitioner (IP), who administers it over the full term.

If you’re thinking of entering into a Scottish trust deed and you’re also a homeowner, you may be worried about how the arrangement will affect your home.

If you’re entering a Scottish trust deed, it’s important to make sure you transfer your current account to another bank before it is signed. This is because, if you owe money to the bank, they have the right to use the funds in your account(s) to ‘set off’ your debt with them.

If you’re a homeowner in Scotland, and are experiencing high levels of debt, your property may be affected when you enter a formal debt relief procedure.