Writes off the unsecured debt you can't afford after three years
Call us on 0800 970 7673 or fill in our simple form to recieve a no obligation call back from on of our friendly, experienced advisers.
Find out more about the fees involved with each debt solution.
Download the Insolvency Service guide to dealing with creditors.
Here is an example of how a Trust Deed could make your debts more manageable.
| Credit card | £21,000 |
| Personal loan | £3,000 |
| Store card A | £4,000 |
| Store card B | £3,000 |
| Total owed | £31,000 |
| Once Trust Deed is in place: | |
|---|---|
| New repayments | £244 |
| New repayments | £8,800 |
Repayments are based on affordability and vary from case to case.
Call us on 0800 970 7673or fill in our simple form to receive a free no obligation call back from one of our friendly, experienced advisers.
It's a formal insolvency solution that is exclusive to residents of Scotland. It works by reducing your unsecured debt repayments to a manageable level, and writing off the unsecured debt you can't afford after (normally) three years. Your new monthly payments will be based on what you can afford after you've taken care of your other essential costs.
The majority of Trust Deeds take three years, but it can vary according to what is agreed with your lenders.
Your Trust Deed could also take longer if you ever need to take a payment break (e.g. due to an unexpected cost that prevents you making payments for a month). If this happens, you'll simply pick up from where you left off - the total number of payments you make will remain the same.
Just give us a call on 0800 970 7673, or fill in the free callback form at the top of the page and we'll get back to you.
If we think a Trust Deed is right for you, we'll pass you onto one of our Insolvency Practitioners, who can help you arrange the Trust Deed.
Of course, it may turn out that a Trust Deed isn't the best solution for your circumstances, in which case we'd help you find a more appropriate solution.
You'll only qualify if you genuinely can't afford to repay your unsecured debts in full within a reasonable period of time, but you must still be able to commit to regular monthly payments.
However, keep in mind that even if you do qualify, you'll only be protected against enforcement action by your lenders (e.g. bankruptcy) if your Trust Deed becomes protected. This requires approval by at least 50% of your lenders, or from lenders accounting for a combined 33% of your overall unsecured debt.
You'll be expected to pay as much as you can afford. When you apply for a Trust Deed, we'll help you calculate how much you can pay each month by looking at your income and outgoings and working out a budget.
The amount you pay each month generally stays the same, but if your available income changes your monthly payments may change accordingly.
No, but it can still help. By reducing your unsecured debt repayments to an affordable level, a Trust Deed should ensure you can also afford all your other essential costs - including your mortgage and other secured debts.
A Trust Deed is very unlikely to lead to the repossession of your home - unlike bankruptcy. It could also enable you to repay a greater portion of your unsecured debts.
However, bankruptcy can actually be a better option for some people. Bankruptcy is normally over more quickly, for example, and doesn't necessarily require regular monthly payments.
A Trust Deed has its disadvantages, just like any other debt solution. Most notably, your credit rating will be affected, which could make obtaining further credit a lot more difficult for six years.
Although you will be able to keep your home with a Trust Deed, homeowners are often required to release equity from their property as part of the arrangement.
Just remember that not getting help with your debts could have even more serious consequences overall.