Trust Deeds

Trust Deed advice

Speak to an expert adviser free on 0800 195 2911. Call us now for confidential advice.

• Trust Deed FAQs
• Facts about Trust Deeds

3 simple steps to getting a Trust Deed

A Trust Deed is a legally binding agreement that, once agreed, could reduce your monthly payments, stop creditors taking further action against you, and upon completion (normally after 3 years) write off the remaining unsecured debt included in your Trust Deed. Getting started is as easy as 1-2-3!

If everything goes as planned, your Trust Deed will come to a successful conclusion after 36 payments. Your outstanding unsecured debts will be written off. (If you're a homeowner, you will be required to release any equity in your property.)

Trust Deeds - the benefits

If you can't keep up with payments to your unsecured debts, a Trust Deed could be your ideal solution. Once protected, you could:

• Have one monthly payment tailored to your circumstances
• Repay your unsecured debt in 3 years (in most cases)
• Protect yourself against further legal action
• Potentially freeze interest and charges
• Avoid sequestration (bankruptcy)

What is a Trust Deed?

A Trust Deed is a legally binding agreement between you and your creditors: you agree to repay what you can afford for an agreed period of time (normally 3 years), and they agree upon successful completion that you will have no further liability to repay any balance of the unsecured debts included in your Trust Deed.

How does it work?

1. Talk to us. Tell us about your debts, your income and your expenditure, and we'll calculate how much you can afford to pay your unsecured creditors, after taking your essential expenses into account.
   
   
2. Next, we'll find out if your creditors will accept this: we'll share your proposal with them and advertise the details in the Edinburgh Gazette. Unless there are objections from more than half of your creditors – or from creditors who 'own' more than a third of your unsecured debt between them – your Trust Deed will become protected by law.
   
   
3. Once this happens, your Trust Deed cannot fail – as long as you keep up with the payments.

Am I eligible for a Trust Deed?

If you're a resident of Scotland and can't keep up with your unsecured debt payments, call 0800 195 2911 and find out if you're eligible. If you are, we can help you decide whether it's the best way for you to repay your debts, or if you’d be better off with an alternative debt solution.

Are there any drawbacks?

Your credit rating will be adversely affected, which can make it harder and more expensive to get credit for the six years it stays on your credit report.

If you don't keep up with your payments, your creditors can start legal action against you – they can petition for your sequestration, for example. If you're not sure your finances are stable enough to make this kind of commitment, maybe a Trust Deed isn't right for you.

You will also be required to release any equity in your property if you own your home.

And finally – you can't take out further credit while your Trust Deed is running.

Top of page

Subject to eligibility and acceptance. Debt write off applies only on completion of a Trust Deed, alternative solutions may be offered. Fees payable when continuing service is provided. Your ability to obtain credit will be affected for 6 years. Homeowners will be required to release the equity in their property. Calls may be recorded. Calls from UK landlines are usually free, but you should check with your network provider for full details of your service.