Trust Deed

Borrowing money when you’re already deeply in debt requires careful consideration, and consultation with your trustee, as there are various factors associated with further borrowing in this situation that can make you vulnerable to court action.

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.

It is easy to see why a trust deed and a deed of trust may be confused with each other, however, in reality they are entirely different things and you should know the differences between the two if you are considering entering into a trust deed or any other formal debt solution.

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.

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.

Being in debt as a sole trader can be particularly concerning because you are personally responsible for the debts of your business.

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.

When you enter a personal insolvency process such as sequestration (Scottish bankruptcy) or a Trust Deed, you may be concerned about what happens if you’re ill and unable to work for a period of time.

In Scotland there are 3 main options for those struggling with problem debt. Each one comes with its own positives and negatives, and also its own financial cost – both initial and on-going.

If you’re about to be discharged from a Trust Deed, you may be wondering to what extent your ability to obtain a mortgage has been affected.

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.