Similar to an IVA, a Trust Deed is a debt solution for Scottish residents that will have you make affordable monthly repayments over a four year period to write off some of your outstanding debt.
A Trust Deed is set up by an Insolvency Practitioner (IP), it will dilute your monthly payments so that you can pay the back in a more bitesize manner over the course of 4 years. After this period, any remaining unsecured debt can be written off. A Trust Deed is similar to an IVA but they are not identical.
Within a Trust Deed you consent to pay back a portion of your owing to protect your assets for example your car and your home.
A trust deed is a legally binding agreement between you and your creditors (the people you owe money to). It is a valid debt solution that people within Scotland can consider.
A Trust Deed is semi flexible when it comes to amendments.
If for example your financial situation improves and you can pay off a larger chunk of the Trust Deed on a monthly basis then you might be expected to contribute a larger sum of money each month to pay off your debts earlier.
However, if you feel your situation has worsened over the course of the Trust Deed, it might be possible to reduce your monthly payments further to accommodate for this change.
In some cases it is also possible to pause the monthly payments entirely until your financial situation improves. However, they may have an effect on your credit score.
In both cases we would recommend getting sufficient debt advice from a professional trustee before taking action.
A Trust Deed could be a great solution to help you reach financial stability. It can help the right individuals pay off their outstanding debts alongside working with the creditors you owe money to.
However, if you do not have a reliable monthly income and or do not meet the criteria for a Trust Deed, there may be other solutions for you that are just as effective.
You can find the best solution for you by using our free debt solution finder.
Complete our free solution finder, we’ll understand your circumstance and then create the best solution for you. If we believe you fit the criteria for an IVA you will be alerted by one of our specialists. Or you can call us directly.
Our friendly specialists will have a 5 minute discussion of your situation and run you through your options. This process is 100% free and confidential.
If we believe an IVA is the best solution for you, our specialists can help motion an IVA whenever you’re ready. This will put you on the path to becoming debt free!
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