Trust Deed – Scottish Residents Only

Advantages:

• It allows you to put forward, through licensed Insolvency Practitioner, a realistic offer of repayment to creditors, if you have one available.
• Only pay back what you can afford. On successful completion any debt you cannot afford to repay is written off.
• In almost all cases, stay in your home and keep your car.
• Clear your unsecured debts in typically 48 months.
• Include all your eligible unsecured debt into the Protected Trust Deed.
• Creditors cannot take legal action once your Trust Deed is protected.

Disadvantages:

• You will not be allowed further credit while on a Protected Trust Deed.
• If your Trust Deed fails, your creditors may request to have you sequestrated (Scottish Bankruptcy). This is unlikely, however this will always be discussed before your Trust Deed commences.
• If you fail to keep up the repayments of your Trust Deed then your assets may be at risk and sequestration proceedings could start against you.
• Certain professionals are barred from practising if they enter in to a Trust Deed.
• After completion of the Trust Deed, it may be more difficult and more expensive to get credit for a further three years as it may stay on your credit report during this time.