Trust Deed
A trust deed is a form of insolvency, so the unsecured debt needs to outnumber the value of the assets, for example, vehicles or houses.
Unsecured debt includes store cards, unsecured loans and credit card debt.
Trust Deed
(These statistics released by GOV.UK provides the latest information on company insolvency in Scotland (companies that are unable to pay debt and enter insolvency or enter supervision or some other company recovery process).
Trust deeds are only available if you reside in Scotland. If you live in Northern Ireland, Wales or England, an IVA (Individual voluntary agreement) is a solution, but it is worth noting that it has different risks, benefits and charges associated with it. A Trust Deed can certainly help you get out of the debt swamp by walking you through the whole procedures and methods.
Further, let’s find out what are the benefits and risks of trust deeds so you can make a well-informed decision to entering it.
Benefits of a Trust Deed
What are the benefits of a Trust Deed? We’ve compiled a handy list of the main points below, click a heading to read more.
4 Year Repayment Schedule
With the assistance of an IP (Insolvency Practitioner), you plan repayment schedules to the creditors over four years. Right after this, any remaining debts included in the Trust Deed are wiped off.
No Further Legal Action
When the trust deed qualifies, the creditors will not push you for making payment or increase the charges and interest to the debt, and they cannot take any legal action.
Risks of a Trust Deed
What are the risks with a Trust Deed? We’ve identified and listed some of the main drawbacks below, click a heading to read more.
Insolvency Practitioner Fees
With the assistance of an IP (Insolvency Practitioner), you plan repayment schedules to the creditors over four years. Right after this, any remaining debts included in the Trust Deed are wiped off.
Possible Impact on Employment
A trust deed can have an impact on the particular terms and conditions of your employment; if you are worried about this, you ought to check your agreement or discuss with the HR department.
Keep Your Vehicle
As you may need to sell some properties, you are usually able to keep one vehicle worth less than £3,000.
The Debt Centre Provide Friendly Debt Help and Practical Solutions
We treat every customer as an individual and our support is tailored to your personal circumstances, ensuring your best interests are central to our ethos.
We will run through all the options available to you and then we will guide you through the next steps of the process.
We define ourselves by our values as a business. These values inform the way treat our customers and our staff.
Recent Case Studies
Kevin
Aged 38, Lives in Birmingham, 7 Debts.
Debt level: £24,450
Monthly payments before IVA: £560
Monthly payments after IVA: £150
Mischa
Aged 27, Lives in Oxford, 8 Debts.
Debt level: £15,900
Monthly payments before IVA: £355
Monthly payments after IVA: £110
Aamil
Aged 57, Lives in Leeds, 6 Debts.
Debt level: £8,200
Monthly payments before IVA: £240
Monthly payments after IVA: £90
Figures in these examples relate to actual customers of The Debt Centre who were undergoing a debt solution with one of our providers between October 2022 and June 2024.
Each customer has consented for their story to be published on our website, although names and pictures may have been changed to respect our customers anonymity.
Practical Debt Management Solutions
Individual Voluntary Arrangement (IVA)
Debt Management Plan (DMP)
Trust Deed
Debt Relief Order
Debt Consolidation Loan
Bankruptcy
