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If you live in Scotland you have a few different options available to you to help with your debt problems. You cannot do an IVA, so alternatively there is the Trust Deed.

What is a Trust Deed?

A Trust Deed is a voluntary, legally binding agreement between you and your creditors and deals with only unsecured debts. You will be appointed a Trustee, this is the role held by the Insolvency Practitioner. The Trustee will negotiate repayment terms with your creditors on your behalf. The Trust Deed usually last for three years. Similar to other plans your surplus will be calculated, plus any assets that you have will need to be taken into consideration. With an ordinary Trust Deed, your creditors can still seek further action against you to recover the money owed and not all creditors have to agree to the terms.

What is a Protected Trust Deed?

The Trust Deed may be registered as protected, which means that it is legally binding, providing that certain criteria is met. Once the Trust Deed is protected, all of your unsecured creditors are bound by the agreement and must not contact you. They will also freeze interest and charges. Unlike other legally binding agreements, the Trust Deed doesn’t need to go through the courts.

Do I qualify for a Trust Deed?

In order to do a Trust Deed you do need to fit a certain criteria. The main thing is that you must live in Scotland. You must have unsecured debts, however if doesn’t necessarily matter how much as a Trust Deed depends on your individual circumstances.

What happens to my creditors?

All of your creditors that agree to the Trust Deed will be bound by the agreement. All creditors are asked to agree to the agreement; if they do not respond then it will automatically be accepted. For any creditors that aren’t included in the Trust Deed they can still look at other methods in order to recover the money owed, but this only applies to those creditors not bound by a protected trust deed. For more details then please click here If you are struggling with debts then please call Payplan on 0800 316 1833.

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