What is a Trust Deed?

IVAs are only available to debtors in England, Wales or Northern Ireland.and are not available in Scotland. The Scottish alternative toanIVA is a Trust Deed.

Call our advisors on free phone 0800 048 1768 or take the 1-Minute Debt Test if you need more information or advice. You could also speak to our advisors to find out whether you are eligible for a Trust Deed.

What is a ‘Protected’ Trust Deed?

A Trust Deed is an alternative to Bankruptcy – which is also known as Sequestration in Scotland– an allows debtors to regain control of their finances and avoid the pitfalls of bankruptcy.

The Bankruptcy (Scotland) Act 1985 regulates this formal agreement between the debtor and his or her creditors.

A Trust Deed is a legal agreement between you and your creditors. A trustee will arrange your Trust Deed for you. He or she will hold a meeting with creditors and determine how much money each party receives.

A Trust Deed gets its 'Protected' status when your creditors have accepted it. This means that the creditors are bound into the Trust Deed agreement and they cannot take any legal action against you. But this is only applicable if you keep up to date with monthly payments.

You only need to make a monthly payment towards your debt once the Trust Deed has been accepted. Your creditors will receive their portion of the amount you pay each month and this will typically be over 36 months. Your creditors write off any unpaid debt on completion of your agreement, ie, after 36 months.

Your financial circumstances determine how big a monthly payment you need to make. The trustee calculates this amount by deducting living expenses and priority debts from your monthly income.

We can give you free Trust Deed advice

Contact our advisors on our free phone number – 0800 048 1768 if you have any questions about trust deeds or you feel as though this might be the right debt solution for you.