Trust Deeds

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• 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 may need to release equity but this will normally not require selling your home.)

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?

As your Trust Deed will affect your credit rating, you might find it harder to obtain credit - and if you do so, you may find that you will have to pay a higher interest rate.

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 may be required to release equity in your property if you own your home, as part of the arrangement.

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

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