Trust Deed - Scotland only
With a Trust Deed, you could have:
- The unsecured debts you can't afford written off
- Legal protection against action from lenders
- One affordable monthly payment
Unaffordable unsecured debts written off
At the end of the agreement, any unsecured debt you can't afford to repay will be written off, as long as everything's gone to plan. This normally happens after three years.
Affordable payments that fit around your bills
During your Trust Deed, your bills and other important living costs will be treated as priority. You'll only pay towards your debts what you can afford once those costs have been covered.
No more demands from lenders
Because a Trust Deed is legally binding, your lenders can't take any further action against you once it's agreed.
How a Trust Deed works
A Trust Deed is designed to help people with unaffordable debts. It works by reducing the amount you pay towards your unsecured debts each month to an affordable level.
After an agreed time - usually three years - the unsecured debts you can't afford to repay will be written off.
During your Trust Deed, you'll be legally protected against further action, as long as you keep up with your payments.
Is it right for me?
A Trust Deed could offer a way out if you don't think you'll ever be able to repay your unsecured debts in full within a reasonable timeframe.
Some people automatically think of bankruptcy when it comes to dealing with unmanageable debts, but a Trust Deed is another option that could let you keep the home you're living in.
However, you'll only qualify for a Trust Deed if you really can't afford to repay what you owe. You must also commit to regular monthly payments until the agreement has come to an end. Finally, you must be a Scottish resident to qualify.
Final points
A Trust Deed could help you if you're really struggling, but do remember that it will affect your credit rating. And although you won't face losing your home on a Trust Deed, homeowners may have to release equity from their home as part of the arrangement.
- 0800 161 3516
- 0161 605 4824