Trust Deed Scotland | Protected 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 in Scotland.
In Scotland 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 a “Protected Trust Deed”, 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 or protected trust deed in Scotland will be different for each individual.
Fees payable
- there is no upfront fee payable apart from any advice fee the adviser may charge (maximum £285)
- the Insolvency Practioner will charge a fee which is taken into consideration when the creditors agree to accept the trust deed application. The trust deed monthly payments agreed will be inclusive of the fee. A typical fee would be 15% of the trust deed amount agreed
Failure to maintain payments on a trust deed agreement may result in sequestration
