Scottish Trust Deeds

Scottish trust deeds are an option for individuals who have unsecured debts and do not have the disposable income to service their monthly credit commitments. A Trust deed is proposed based on what a client owes and that the proposed monthly payment is acceptable to the creditors. Typically, a Trust Deed is in place for 3 years but can be lengthened in line with the creditor’s requirements. Once the Trust deed is protected the creditors are no longer allowed to directly pursue the debtor.

Individuals can write off up to 90% of their unsecured debt once their Trust deed is accepted and becomes protected. One of the many benefits of entering into a Trust Deed is that all of the interest that formally accrued each month if just minimum payments were being made will now cease to be added to the monthly balance. The repayment plan will allow you to take control of your finances and manage your disposable income more confidently. We do not charge a set up fee and our advice is completely impartial, we aim to provide the most appropriate advice tailored to your situation and circumstances.

The monthly payment in a Scottish Trust Deed is calculated based upon your monthly disposable income. All of your day to day living costs are taken into account and what is left if deemed to be acceptable as a proposed amount will be your contribution in the Trust Deed. The living expenses accounted for include your rent, mortgage, food, utilities and travel. Before an offer is made to the creditors a full thorough income and expenditure analysis is carried out ensuring that all income and expenditure is accounted for, this enables the Insolvency Practitioner to confidently make an offer to the creditors based upon the facts and also that you are happy that of all of your monthly commitments are covered before paying for your debts.

After your Trust Deed has been completed and all payments made, your unsecured debts are considered to be satisfied. In most cases this is after 36 months, there are cases where this will be extended but it is generally after 3 years. Once you are debt free you can start to responsibly rebuild your credit file.