If you live in Scotland and have debts in excess of £15000 you may wish to seek Scottish Trust Deed advice. Scottish Trust Deed’s are voluntary agreements between a debtor and creditor, comparable to an IVA. With a Scottish Trust Deed a debtor appoints a trustee (who must be a qualified insolvency practitioner) to whom he/she passes an agreed amount of assets to sell for the benefit of his creditors.
Pros
- Once you have completed the term of the Trust Deed, any remaining debts are written off
- Freezes interest and charges on your debts for the duration of the term (usually three years)
- Trust Deeds are legally binding agreements which prevent your creditors contacting you
- You know the exact date when you will be free from debt
- Gets you one lower affordable monthly payment
Cons
- A Trust Deed requires commitment – regular payments must be made for the full term (normally 3 years)
- You can’t take out further credit while your Trust Deed is running
- You may be made bankrupt if you do not stick to the terms of the Trust Deed
- Your credit rating will be adversely affected
Like an IVA, a Scottish Trust Deed can be an attractive alternative to Sequestration. To find out if this is the case for you call us for free Trust Deed Advice on 0800 121 48 63 or simply complete the form below and one of our advisors will be in touch with you.
