Trust Deed

If you live in Scotland and a debt management plan is not suitable, then you might wish to consider a Trust Deed.

A Trust Deed is a formal, legally binding agreement between an individual who is unable to pay his/her creditors and a licensed Insolvency Practitioner (the Trustee). The Trustee will put together a form of proposals to the Creditors for approval and administer the Trust Deed. A Trust Deed is a form of informal sequestration (bankruptcy) but is still regulated by The Bankruptcy (Scotland) Act 1985.

Call Payplan free on 0800 917 7823 or use our Debt Calculator to submit your debt problem online for free trust deed advice.

Provided certain conditions are met, the Trust Deed may be registered as 'protected', this prevents creditors from taking further steps e.g. sequestration (bankruptcy) to recover debts due to them.

The advantages of a trust deed are that it can relieve the pressure from the creditors as all correspondence and queries are dealt with by the Trustee. It puts the debtor in control of their financial situation rather than the creditors. A Trust Deed is usually more flexible and costs less to administer than sequestration. It also allows the debtor the right to hold certain public offices - which would not be the case with sequestration. It may be possible for companies to continue trading and individuals to retain their directorships.

If a Trust Deed is not possible, then individuals can apply for the equivalent of bankruptcy in Scotland, known as Sequestration.

For immediate and free debt advice please call Payplan free on 0800 917 7823 or use ourDebt Calculator to submit your debt problem online.

Go to our debt information library for detailed information on all debt-related issues

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