If you are reading this page you are probably considering the best way to solve your current financial difficulties and may well be confused by conflicting advice and seemingly wonderful adverts such as those which offer to “reduce your debt by up to 90%” and “one simple payment” etc as seen on TV.
 We receive many enquiries from the public who thought they were signing up for a repayment programme or consolidation plan when in actual fact they had signed a Trust Deed (IVA in England & Wales).
By signing a Trust Deed you are voluntarily placing your assets in the hands of a third party (Trustee) who then acts for the benefit of your creditors. A Trust Deed is a legally binding arrangement and you CANNOT withdraw for a Trust once you have signed it.
A Trust Deed will NOT overcome a wages arrestment or Inhibition. However a Trust Deed, provided it meets certain conditions, may be registered as a “Protected Trust Deed” which will prevent creditors from taking further action including petitioning for the debtor’s sequestration (bankruptcy) so long as the person granting the Trust Deed abides by its terms.
Trust Deeds and/or Sequestration (Bankruptcy), may seem a daunting prospect in dealing with debt problems. However, depending on individual circumstances, a Trust Deed (or alternatively Sequestration) can provide quick relief from debts where the alternatives are many, many years of small repayments to clear substantial debts, usually with creditors still pressing for payment.
We shall gladly provide general information on the pro’s and cons of Trust Deeds and its implication on your home and assets
Key Facts:
- Trust Deeds in Scotland generally last for THREE years.
- Unlike bankruptcy, you do not have to meet certain legal criteria to enter into a Trust Deed (entering into a Trust Deed does however defines you as “apparently
 insolvent” in the eyes of the law).
- The Trustee WILL seek a contribution from you towards the debts as a dividend MUST be offered to creditors. If you have no surplus income then you should maybe consider bankruptcy as an alternative.
- The Trustee WILL have an interest in your home (the equity) and will require to dispose of it one way or another at the end of your Trust Deed. If your home is deemed excessive for your needs the Trustee can tell you to sell it. We can help in this area.
- You can have a bank account although the bank may well stipulate no overdrafts or cheque cards.
- We would strongly advise you to seek our advice and assistance before signing a Trust Deed to avoid any unpleasant surprises in the future.
- There are no debt levels as such which determine when to enter into a Trust Deed. However, depending on your circumstances, debts in excess of around £10,500 may make a Trust Deed desirable. Contact us for an expert and impartial assessment of your situation and all options open to you.
It is impossible to detail all aspects of Trust Deeds here, please ask for one of our insolvency specialist to contact you for advice SPECIFIC to YOUR requirements.
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