Trust Deed Articles
How has the Mond ruling changed PPI claims after a Trust Deed?
26th February 2019If you are a Scottish resident in financial difficulty, you may have entered into a Trust Deed in order to restructure debt repayments to creditors. A Trust Deed is a fixed voluntary agreement made between the debtor and creditor, with the help of a trustee. Debt is broken down into smaller, affordable instalments, typically lasting […]
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What happens to my Trust Deed if I’m unemployed or lose my job?
20th December 2018The typical term of a Trust Deed is four years, so it’s quite possible a debtor’s employment situation will change during this time. If you’re in a Trust Deed and fear you may become unemployed, or have already lost your job, you need to know how it will affect your Trust Deed. So let’s look […]
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How long does a trust deed stay on your credit file?
5th October 2018Entering into a Scottish trust deed is an effective way to escape unmanageable debt, and allows for a fresh financial start once the trust deed term has come to an end. As with all official debt procedures, however, there are negative aspects that require consideration. One of these factors is the adverse effect a trust […]
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How does a trust deed work?
4th October 2018Trust deeds are formal insolvency procedures that are available only in Scotland. They offer a viable alternative to bankruptcy if you’re struggling to repay unsecured debt, and generally last for three to four years. Trust deeds work by transferring your assets to the trustee, and making a single affordable monthly repayment that is then distributed […]
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Can I borrow money whilst I’m in a Trust Deed?
3rd October 2018Borrowing 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. One factor is your adverse credit record that does make borrowing difficult whilst you’re in a trust deed, but […]
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Can creditors contact me when I am in a trust deed?
17th July 2018What is a trust deed? 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. The arrangement typically lasts four years, during which you will be required to make one monthly repayment to an appointed insolvency practitioner who will […]
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What debts can I include in a trust deed?
16th July 2018When it comes to debt, there are two main types which you may be dealing with: secured and unsecured. You may have debts which fall in to either or both of these categories. As each class of debt is viewed differently it is important to know the difference between secured and unsecured borrowing before deciding […]
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Will my creditors agree to my trust deed?
15th July 2018What is a trust deed? A trust deed is a formal debt solution which enables you to make affordable monthly repayments towards your debts for a set period of time, typically four years. After this time is up, so long as you have kept up with the agreed monthly payments, any outstanding debts which were […]
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Trust deed vs deed of trust – what’s the difference?
6th July 2018It 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. What is a […]
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How to clear your council tax arrears with a trust deed
6th March 2018If 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. It stops legal action by all creditors included in the arrangement, and provides a ‘safe haven’ from which to regain control of your finances. As council tax arrears […]
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Can I remortgage while in a Trust Deed / Sequestrated / DAS?
10th November 2017If 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. This doesn’t necessarily mean you’ll need to sell your home, however – you may be able to remortgage to provide additional funds for your creditors. If you have a […]
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How Do You Know if You Qualify for an IVA?
17th July 2017Guest article written by William Berry; an experienced personal debt adviser and Director at www.IVA.co.uk. For information on how IVAs work in Scotland, there is a similar process called a Trust Deed If you have unmanageable debt, an Individual Voluntary Arrangement (IVA) helps you repay as much money as possible to creditors over an extended […]
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Is it possible to enter into a second Trust Deed?
6th July 2017Scottish Trust Deeds help eligible people in debt to repay as much as possible, with the remainder being written off at the end of the term – usually four years. Creditors vote on whether to accept the repayment arrangement, which becomes protected if they agree. It is an effective way to repay your creditors without […]
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Can I enter into a Trust Deed as a sole trader when my business is struggling?
6th July 2017Being in debt as a sole trader can be particularly concerning because you are personally responsible for the debts of your business. Unlike a limited company which is a separate legal entity from its owners/directors, sole traders face the prospect of personal bankruptcy alongside the closure of their business. There are a number of debt […]
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What happens if I am signed off work during a sequestration or a Trust Deed?
11th May 2017When 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. It’s reassuring to know that formal insolvency arrangements cater for times like this, when circumstances are out of your control, […]
Read moreHow to improve your credit score after a Scottish Trust Deed
11th May 2017Scottish Trust Deeds generally last for four years, so if you’ve successfully reached the end of yours, you’ll be starting to think about rebuilding your financial status. But how will the Trust Deed have affected your credit rating, and what can you do to improve the situation? A Trust Deed remains on your credit file […]
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Comparing the cost of DAS, Sequestration and Trust Deed
1st February 2017In 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. Here we compare the 3 choices available to you and how the costs of each stack up: Debt Arrangement Scheme (DAS) […]
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Your guide to getting a mortgage after a Trust Deed
5th December 2016If 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. It’s a common concern for anyone who has struggled with debt, that they won’t be able to borrow in the future, and the general reluctance of banks to lend […]
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What happens when a Trust Deed ends?
2nd December 2016Your Trust Deed has finally come to an end; you’ve made all your payments and have been formally discharged. Congratulations! While you are probably feeling a sense of relief that the process is now behind you, and excitement for a debt-free future, you may also be asking yourself – what happens now? Well the good […]
Read moreCan I get a mortgage after an IVA or Trust Deed?
14th September 2016The 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. Although it’s not impossible to get a mortgage after an […]
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Scottish IVAs – What you need to know about IVAs and debt management in Scotland
6th July 2016If 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). An IVA in Scotland allows you to repay your debts over an extended period of time, and is a formal insolvency procedure. The correct term for an […]
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Can I object to the re-opening of a Trust Deed?
4th July 2016The 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, are now facing the prospect of being on the Register of Insolvencies once again, and losing out on incoming funds. It’s […]
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What happens with PPI claims after a Trust Deed?
21st June 2016Part of an insolvency practitioner’s duties in administering your Trust Deed is to establish eligibility to claim PPI. If they find that you’re entitled to a refund, these monies will be used to repay creditors, in addition to your normal monthly Trust Deed payments. The same has applied to people even after they have been […]
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Pros and Cons of an IVA and Understanding the Difference in Scotland
21st August 2015An 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. Once terms have been accepted by a minimum of 75% of creditors, the agreement becomes legally binding and they will no longer […]
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Trust deeds and employment
25th June 2015Whether being in debt affects an employment contract is a serious concern for many people. Some contracts do include a clause regarding this issue, but it does not necessarily mean that your job will be lost. The industry in which you work will have a bearing on this – undertaking a formal insolvency route whilst […]
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Life after a Trust Deed
11th June 2015The end of your Trust Deed will be marked with a formal discharge letter from the Trustee, and your entry on the Register of Insolvencies will be removed. If your property has been earmarked for inclusion within the Trust Deed, you may need to pay a lump sum to fulfil the final terms, however. Trust […]
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Trust Deeds and how they affect property assets
10th June 2015If you are considering a Scottish Trust Deed, the question of how it will affect your property assets is probably at the forefront of your mind. Protecting their home is a major issue for anyone in debt, and essentially there are two options when it comes to Scottish Trust Deeds: Unprotected: you do not have […]
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Will I Lose My Home If I Enter Into a Trust Deed?
5th December 2013A trust deed is a common debt repayment programme based around a voluntary arrangement made between you, your creditors and a qualified independent ‘trustee’ who takes control of your debt repayments for a period of 48 months. If you’re having difficulty paying your debts and have assets or a regular income, you are likely to […]
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Understanding How Trust Deeds and Sequestration View Secured and Unsecured Debts
4th December 2013If 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. Below, we’ll discuss the types of debts that can be accepted into a trust deed or sequestration – […]
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What’s the difference between IVAs and protected trust deeds?
22nd March 2013According to insolvency statistics from Accountant in Bankruptcy (AiB), released earlier this year, bankruptcy numbers in Scotland fell by 30.5 per cent in Q3 of 2012/13 compared with the previous year. The rising popularity of other viable debt solutions is clearly attracting an increasing number of debtors looking for an alternative to sequestration. If you’re […]
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How do Protected Trust Deeds work?
8th March 2013As households are faced with increasing financial pressures, many are turning to debt solutions in order to stay afloat. In the financial year 2011/12 alone, just over 9,000 Protected Trust Deeds were granted in Scotland. A Protected Trust Deed is an option for residents in Scotland who are struggling to pay unsecured debts. If you […]
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