Trust Deed

Trust Deed

If you live in Scotland then you may be able to enter a Trust Deed.

A Trust Deed is an arrangement that is similar to a debt management plan. An agreement is arranged for a monthly payment to be made by you that is collected by a firm of Trustee’s. At Reality Debt we use a variety of firms called Insolvency Practitioners who would set up the Trust Deed. 

A Trust Deed normally runs for 36 months. After this period you would be released and have no more debts. All a person would have to do is make sure they maintain the payments for the duration.  

The advantages of a Trust Deed are that it takes the pressure off you as all correspondence with your creditors is handled by the Trustee. It puts you rather than your creditors in control of your financial situation.  

Provided certain conditions are met, the Trust Deed may be registered as "protected", thereby preventing creditors from taking any further action against you. This can be a huge relief when you consider that left managing your own debts may result in legal action being taken against you to recover the money you owe. 

Financial and personal circumstances vary, so the consequences of signing a Trust Deed will be different for each individual.