Trust Deeds

A Trust Deed or Protected Trust Deed is the Scottish equivalent to an Individual Voluntary Arrangement (IVA). It is a legally-binding solution which allows you to make a single, affordable monthly payment to a Licensed Insolvency Practitioner to cover all your unsecured debts.

A Scottish Trust Deed typically lasts for three years and is only available to those who live in Scotland. At the end of your Protected Trust Deed, all remaining unsecured debt will be legally written off.

Is a Trust Deed right for me?

An Insolvency Practitioner will assess what you can realistically afford, once a thorough income and expenditure check is completed.

Once the Protected Trust Deed is agreed, the Insolvency Practitioner will be responsible for distributing your monthly payment among your creditors.

At the end of your Protected Trust Deed period which is usually three years, any remaining unsecured debt will be legally written off.

What are the benefits of Trust Deeds?

• You will have complete legal protection from your creditors- no more hassle, no more phone calls.
• You will make a single, affordable monthly payment.
• Protected Trust Deeds typically last only three years regardless of debt amount.
• Interest and charges are legally frozen while a Trust Deed is completed.
• Any remaining unsecured debt will be written off at the end of the completed Trust Deed.

What are the disadvantages of Trust Deeds?

• Your credit rating may be affected for up to six years.
• If you own any property, you may need to remortgage it and pay a portion of the money into the Protected Trust Deed at the end of the fixed term.