WHAT ARE THEY?
A Trust Deed is a voluntary arrangement for individuals who are permanently resident in Scotland. It allows you to come to a legally binding arrangement with your creditors to repay part, or all of what you owe. A Trustee will hold the rights to your assets and you will be asked to make monthly contributions for a set period, usually 48 months.
It is important that you consider the features and benefits of a Trust Deed. To understand if it's the right option for you, here is some key information to help.
Lower Monthly repayments to your creditors.
The Interest is frozen as well as the charges.
A fixed agreement typically lasting 4 years.
You won't receive any more calls from creditors.
Protection from legal/sheriff action from your unsecured creditors
Available if you live in Scotland or the Highlands & Islands.
If you are a homeowner you will be expected to release part of any positive equity for your creditors.
A trust deed will be on your credit file for up to 6 years, which may make it difficult to obtain credit
If you don't stick to the terms, your trustee can apply for the Deed to come to an end.
Your Trust Deed will be recorded and entered on to a public register.