Trust Deed from Debt Advisory Service
POSITIVE SOLUTIONS FOR INDIVIDUALS & BUSINESSES
What is a Trust Deed?
For individuals resident in Scotland it is a mechanism by which you can repay your debts over a specified period. It does not involve an upfront fee. Monthly payments are based on what you can afford and after the period of your arrangement, any remaining debts are written off. It is a formal legally binding agreement between you and a licensed Insolvency Practitioner (the Trustee) and lasts for a period of three years.
What is the process?
If you decide to go ahead with a Trust Deed you must provide the Trustee with details of everyone you owe money to, how much you think you can pay into an arrangement each month and any other financial information that might me relevant. The Trustee will put together a form of proposals to the lenders for approval and administer the Trust Deed. A Trust Deed is a form of "informal" bankruptcy but still regulated by The Bankruptcy (Scotland) Act 1985. Provided certain conditions are met, the Trust Deed may be registered as "protected". This prevents lenders from taking legal action against you and ensures that interest will be frozen on your debts.
| What are the advantages of a Trust Deed? |
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The pressure of being in debt is reduced as all correspondence, including any queries from lenders, is handled by the Trustee. |
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A Trust Deed is usually more flexible and costs less to administer than sequestration. |
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It also allows the debtor the right to hold certain public offices - which would not be the case with sequestration. |
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It may be possible for companies to continue trading and individuals to retain their directorships. |
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The information is not published (unlike sequestrations). |
What am I committing myself to if I sign a Trust Deed?
You are entering into a contract to repay your debts, usually at a reduced rate.
As such you agree to: |
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Co-operate with the Trustee |
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Pay the agreed monthly contribution |
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Not take any further credit |
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Advise the Trustee should you receive any unexpected windfalls in excess of £200 |
To find out whether this is a suitable option for you, call FREEPHONE 08000 191 278
or email enquiries@debtadvisoryservice.co.uk
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