Trust Deeds

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 and you will be debt free. (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. You could:

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 not to take any action against you, not to contact you about your debts, and to write off all outstanding debt once your Trust Deed is successfully concluded.

How does it work?

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.

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.

Once this happens, your Trust Deed cannot fail – as long as you keep up with the payments. You should be debt free in 36 months.

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 clear 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.

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Subject to eligibility and acceptance. Debt write off applies only on completion of a Trust Deed, alternative solutions may be offered. Initial advice is free, fees payable for continuing services. 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.