Debt report banner

Can you take out joint Trust Deeds in Scotland?

  • Sharon McDougall -
  • 11th April 2022 -
  • 2 minutes to read

Do joint Trust Deeds exist in Scotland?

Scottish Trust Deeds are an effective way to escape debt if repayments become unmanageable. Personal circumstances can change very rapidly and even if you only owe a relatively small amount, unsecured debts can increase significantly due to the high interest rates and charges applied.

If you’re eligible for a Trust Deed, and it’s deemed to be your best option, it will allow you to repay a proportion of your overall debt, usually over four years. What happens if you have joint debt, however, or your partner is also experiencing high levels of unaffordable debt?

Can you take out a joint Trust Deed?

Joint Trust Deeds don’t exist, as these debt mechanisms are designed to be used by individuals. There are ways you can run a Trust Deed that encompasses debts as a couple, however – in other words, two individual Trust Deeds that run side by side.

This enables you to pay off your debts roughly at the same time, but there are some key issues surrounding liability for your partner’s debts that need to be mentioned. Essentially, you’re only liable for another person’s debts if the borrowing was taken out in joint names, or you are a guarantor for their loan.

Joint debts are typically taken out on a ‘joint and several liability’ basis, which means that the lender can pursue both or either of you for repayment of the entire amount. If you want to pursue the possibility of taking out individual Trust Deeds that run alongside each other, you should seek reliable and independent insolvency advice from a professional.

Running individual Trust Deeds side by side

Although a joint Trust Deed doesn’t technically exist, there may be a way to run two individual Trust Deeds alongside each other. This would involve you both taking professional advice to tackle your debts, and enabling a licensed insolvency practitioner (IP) to determine whether it’s a viable option.

Your IP may advise that the best way forward is for you or your partner to enter a different debt solution, such as a Debt Payment Plan (DPP), or to tackle your debts in a different way. Perhaps you owe or earn more than your partner, for instance, or one of you owns property in their sole name.

A significant advantage of a Scottish Trust Deed, and other debt solutions, is the flexibility they offer if you or your partner’s circumstances change. If you separated or lost your jobs, for example, it may be possible to renegotiate lower repayments or an extended term.

What are the potential alternatives to a joint Trust Deed?

Your adviser will take various factors into account and conduct a thorough assessment of your financial situation to make sure you take the right steps to pay off your debts. They may recommend an alternative, such as the Debt Arrangement Scheme (DAS).

Sequestration may also be an option, which although drastic, can leave people free of debt and able to start again financially within 12 months. It’s vital to seek early professional debt advice if you’re struggling to repay, however, and Scotland Debt Solutions can help.

We’re debt specialists and can offer you a same‐day meeting free‐of‐charge. We operate offices around Scotland and can quickly establish your best options.

Sharon McDougall
Sharon McDougall
Manager
About

Why Choose Us

Speak Direct With
Speak Direct With
A Qualified Adviser
We Don't Operate
We Don't Operate
Call Centres
5 Offices in Scotland
5 Offices in Scotland
National Coverage
Ask us About
Ask us About
Free Home Visits
Fully Regulated Advisors
Fully Regulated Advisors
From a Reputable Firm
Helping Scots Get
Helping Scots Get
Out of Debt Since 1989

We'll give you a call

Our Scottish based team can help advise you on your debt problems.

Here at Scotland Debt Solutions we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See our Privacy Policy.
Tools

Useful Tools

Personalised Debt Report

Personalised Debt Report

Our personalised debt report will help you better understand your financial position and see where your money is going.

Free Scheduled Call

Free Scheduled Call

 Arrange a call with an expert advisor at a time to suit you.

Find a Local Office

Find a Local Office

We have five offices located across Scotland. Find your nearest one here.

OUR SERVICES

We can help you with...

Sequestration

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

Trust Deeds in Scotland

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 will be wiped out.

Debt Arrangement Scheme (DAS)

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.

Business Debts

Business Debts

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

Close Menu Share with a Friend

Send this page to a friend

via Whatsapp via Messenger via Messenger via Email
Make sure you have WhatsApp installed.

Copy link to clipboard
Close

This site uses cookies to monitor site performance and provide a more responsive and personalised experience. You must agree to our use of certain cookies. For more information on how we use and manage cookies please read our PRIVACY POLICY