How will a trust deed affect me?
A trust deed should be carefully considered because of the possible consequences for your personal, professional and financial life. These include the following:
- You'll have to keep to a budget for the full term of your trust deed: usually 4 years.
- In addition to your employment, a trust deed can also affect any hire purchase agreements you might have.
- Your details will also be added to a public register, called the Register of Insolvencies (ROI), for a period of five years. The register is maintained by the Accountant in Bankruptcy (AiB) and is available for viewing by the general public. It contains all details of current protected trust deeds.
- There will be restrictions on your spending during your trust deed. You’ll have to stick carefully to a budget to ensure you can afford the monthly payments.
- There is a charge for the services of an insolvency practitioner, but the fees are deducted from the trust deed fund. This is the total amount of money you are able to offer your creditors and is made up of your monthly payment (over the agreed term) and any assets or equity included.
Who oversees my protected trust deed?
You can’t set up a trust deed without an IP (they're known as your 'trustee'). The IP draws up a proposal and will also help and support you throughout the arrangement.
If you’re recommended a trust deed, you'll be referred to one of our four trusted third party organisations: KPMG, Campbell Dallas, French Duncan or Grant Thornton UK. One of these organisations will set up and administer your trust deed.
Alternative debt solutions
While a trust deed may be the correct solution to your financial situation, there are some other options that you might want to take a look at:
Advice on trust deeds
Trust deeds are a specialised area of Scottish debt advice. To make sure it’s the best solution for you, use our online Debt Remedy tool. We’ll provide you with a tailored budget and the best solution to help you deal with your debts.
If you’d prefer to talk to us, call our Helpline and speak to one of our expert Scottish debt advisors.
If a trust deed is the best solution for you, we'll take the stress out of finding an IP and give you details of the best firms available.