A Trust Deed/Protected Trust Deed is a voluntary, agreement between you and your creditors. A Trust Deed is sightly different than Protected Trust Deed. A Trust Deed is not protected which means that the agreement is not binding on all of your creditors, whereas a Protected Trust Deed is binding meaning that creditors cannot take action against you. A Trust Deed will become ‘protected’ if the majority of your creditors are happy with the arrangement.
A Trust Deed allows you to make affordable monthly payments towards your debt over a typical term of four years, allowing you to repay all or part of what you owe. A Trust Deed is supervised by a Licenced Insolvency Practitioner, also referred to as a Trustee. A Trust Deed is available for Scottish residents only, a minimum of six months of residence in Scotland is required. Trust Deeds are an alternative option to Bankruptcy, or Sequestration as it is also known in Scotland.
*Where a Trust Deed/Protected Trust Deed is available, another debt solution may also be available and suitable for you.
To give you an idea of how a Trust Deed might work for you, the fees and timescales, see our below example. We would be happy to provide you with something more specific and tailored to your personal circumstances. Just complete our online enquiry form and we will call you back or call on either 08081 292 010 or 0161 476 9500.
Mr R lives in rented accommodation. He had debts totalling £10,851.
He could only afford £116 to his creditors.
His TD was protected for £116 x 48 months.
Here’s how it worked:
48 months x £116 = £5,568 paid in to the Trust Deed
£10,851 – £5,568 = £5,283 debt Mr H was discharged from