Read our information on Trust Deeds if you are a Scottish resident and you are looking for an IVA equivalent.
A trust deed is a debt repaymentsolution which is only available to Scottish debtors.
Trust Deeds are legally binding between you and your creditors and at the end of the agreed term (usually 36 months) your unaffordable debt (i.e. what you haven’t repaid) will be written of.
To qualify for a Trust Deed debtors must show they are technically insolvent, meaning that they cannot afford to make the contracted repayments to their various debts.
The disadvantages to Trust Deeds are that existing collection actions continue to be effective and only those creditors who voted in favour of the Trust Deed are bound by the terms of the Deed, so home owners may be forced to sell if creditors cannot be paid in full from other sources and debtors cannot trade on their own account or hold directorships of a limited company.
However, subject to fulfilling certain conditions, the Trust Deed may be registered as "Protected", which means that creditors are unable to take further action to recover any debts owed, such as starting bankruptcy proceedings.
The process of becoming ‘Protected’ is for the trustee to publish a notice in the Edinburgh Gazette and to then send a copy of the notice and the Trust Deed to all creditors to stating that the Trust Deed is to be protected.
The creditors have just 5 weeks from the date of the notice to make written objections and providing a simple majority in numbers and in excess of 1/3rd by value of the total debt do NOT object, the Trust Deed automatically becomes protected
Contact us for more information about Scottish Trust Deeds
We can offer you free information about the Scottish Trust Deed. We can also offer advice on alternatives such as debt management plans. For more information, call free on 0800 048 1768.