Check If You Qualify

Can you take out joint Trust Deeds in Scotland?

Sharon McDougall - Updated - 2nd May 2024 - 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.

Scotland Debt Calculator

Get a rough indication of what your repayments might be under each of our different debt solutions.

Your Total Debt

£0 - £5,000

£5,000 - £10,000

£10,000 - £20,000

£20,000+

Your Employment Status

I am employed

I am self-employed

I am unemployed

I am a student

I am retired

Your Total Monthly Income

£0 - £1,000

£1,000 - £2,000

£2,000 - £3,000

£3,000+

What can you pay monthly towards your debt?

£0 - £100

£100 - £200

£200 - £300

£300+

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.

facebook colour icon twitter colour icon linkedin colour icon messenger colour icon whatsapp colour icon email colour icon
Sharon McDougall Square

Sharon McDougall

Manager

Other Articles

Can I borrow money whilst I’m in a Trust Deed? Can I Borrow Money

Can I borrow money whilst I’m in a 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 situatio...

Your guide to getting a mortgage after a Trust Deed Guide to get a mortgage

Your guide to getting a mortgage after a Trust Deed

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.

What is an inhibition court order in Scotland? Court Order

What is an inhibition court order in Scotland?

If you’ve lost your job, state benefits and tax credits can provide vital financial support to see you through this tough time and help you avoid taking on too much debt while you look for more work...

About

Why Choose Us

Usp Discussion

Speak Direct With

A Qualified Adviser

Headset

We Don't Operate

Call Centres

Usp Location

5 Offices in Scotland

National Coverage

Usp House

Ask us About

Home Visits

Usp Award

Fully Regulated Advisors

From a Reputable Firm

Usp Hand Heart

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
Usp Planner

Personalised Debt Report

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

Debt Report
Instant Scheduled Call & WhatsApp
Headset

Instant Scheduled Call & WhatsApp

Arrange a call with an expert advisor at a time to suit you or contact our team via WhatsApp for immediate help and advice.

Arrange Callback
Find a Local Office
Usp Signpost

Find a Local Office

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

Find an Office

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

Find out More
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 included in the Trust Deed will not need to be paid.

Find out More
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.

Find out More
Business Debts
Icon Briefcase

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

Business Debts

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

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.

ICAS Insolvency Practitioners