Trust Deed Explained

What is a Trust Deed?

A Trust Deed is a legally binding debt service between you and your creditors and is regulated by the Bankruptcy (Scotland) Act 1985 (as amended) which benefits both you and your creditors.

Depending upon your circumstances with a Trust Deed from Debt Advisory Line you benefit from a comprehensive debt service including:

• Up to 90% of your outstanding debt written off. (only debts within the Trust Deed)
• Get this debt help to clear debt usually within 36 months.
• You will be protected from further court action once your Trust Deed has been protected.
• All contact from your creditors will be dealt with on your behalf by your Trustee.
• Your monthly contribution is based on what you can realistically afford.
• Trust Deeds (and sequestrations) will not be published in your local newspaper.
• It will not affect you job in any way i.e. if you are a police officer or in the armed forces. *(subject to contract)
• Trust Deeds are more flexible, less restrictive and generally cost less to administer than sequestration.
• You can re-mortgage whilst under a Trust Deed.

For Fees and Important Information please see below

After the term of the Trust Deed the remainder of the debts are effectively written off usually after three years of payments have been made.

A Trust Deed is a legally binding agreement between you and your creditors. It is regulated by The Bankruptcy (Scotland) Act 1985 (as amended) and offers a less formal and restrictive alterative to sequestration (bankruptcy) - particularly if you are a home owner or joint home owner.

What criteria do I need to meet?

• One creditor or more
• A minimum debt level of £10,000
• A minimum monthly contribution of £175 or £200 if you have no assets.

• In full time employment or retired with private pensions.

Requirements to maintain a Trust Deed

• You will be required to release any equity in your property.
• This debt solution is binding on you as well as your creditors.
• If you were to default on the debt management arrangement then the Insolvency Practitioner can petition for your sequestration.
• You must declare any windfalls, inheritance or pay increases to your (trustee) Insolvency Practitioner.
• If you bank with one of your creditors you may need to open a new bank account.

How much will I have to pay for a Trust Deed?

This all depends on your circumstances. At Debt Advisory Line we'll give you debt advice based on your income & expenditure, making the payments affordable for you. You will be required to set up a standing order with your Insolvency Practitioner, which will then go in to your Trust Deed account.

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