Please note: Debt Support Service do not administer Scottish Debt Solutions, but we can advise you of the most suitable debt solution to your circumstances.
Trust Deed / Protected Trust Deed
A trust deed is an agreement with your creditors to repay part of what you owe to them. A trust deed normally lasts for 4 years and providing no payments have been missed and you adhere to its terms, any outstanding debts will be written off.
- If your creditors agree to a protected Trust Deed, interest and charges are frozen.
- You may be able to enter a Trust Deed without putting your home at risk.
- You make one affordable monthly payment.
- Once your trust deed becomes protected your creditors cannot take further action against you.
- For a Trust Deed to become protected your assets may be transferred to the trustee, who will administer the Trust Deed, and these could be sold to repay your creditors.
- Your credit file may be affected.
- Unless it becomes protected only the creditors who agree to the Trust Deed are bound by its terms.
- If you do not cooperate with the trustee, they can try to make you bankrupt.
Debt Arrangement Scheme (DAS)
A DAS is a legal scheme run by the Scottish government which allows you to pay your debts over time through a Debt Payment Programme (DPP).
Whilst you’re in the DPP, interest and charges are frozen and most of your creditors cannot take further action against you. You apply for a DPP via a DAS Administrator.
You will typically pay all the debt you owe back to your creditors but in some circumstances the creditors may accept less.
- The creditors included will not be able to take further action whilst you’re in the DPP.
- You will only make one affordable monthly payment to your debts.
- You will repay your debts over a reasonable period.
- A DAS can be flexible to your circumstances should they change.
- Your creditors may object to your DAS.
- Your bank account may be suspended or restricted to a basic account.
- Some debts may not be included in a DPP.
- Your credit rating may be affected.
- Your details will be listed on the DAS register.
Bankruptcy (Sequestration) and Minimal Asset Process (MAP)
To apply for either of the above, you will need to speak with a specialist money advisor who can help with your application and which route to bankruptcy would best suit your needs.
The fees and criteria are different in Scotland for Bankruptcy and MAP, you should seek specialist advice if you’re considering this route.
If you’re struggling with your debts, you should seek debt advice from an FCA approved organisation before proceeding with a debt solution.