Criteria

• You must be a Scottish resident for a minimum of 6 months before applying for a Trust Deed.
• Minimum debt level of £5,000.
• Trust deed cannot be joint.
• Minimum monthly payment of £100.
• Assets cannot be higher than debt level.
• Depending on your job role/title there may be restrictions from your employer that will not allow you to apply for a trust deed.
• The voting house WATCH/TIX would not accept a trust deed if the client is a homeowner, unless the debt outweighs the equity or the client is over 64 years old.

Benefits

• All interest and charges are frozen at the point the Trust Deed is signed.
• Once approved, creditors are unable to take further action against you.
• At the end of your agreement, any debts not repaid will be written off.
• The Insolvency company will deal with all creditor correspondence.
• If you are a homeowner you may be able to retain your property if there is no or little equity available.
• The trust deed usually only lasts 48 months but ultimately this is down to the discretion of the Trustee.
• You are allowed to keep your car as long as it is worth less than £3,000 and is essential.

Disadvantages

• The rights to your assets are transferred to the Trustee, including your property.
• You may be required to release equity from your property if it is available.
• The creditors can object to the trust deed becoming protected.
• The trust deed will adversely affect your credit rating for 6 years.
• You cannot take out any credit whilst on the trust deed without consulting your Trustee first.
• If you fail to abide by the terms of the trust deed it is likely you will be forced into a sequestration.
• The trust deed may be extended for 12 months if you are a homeowner.
• Your details will be added to the Register of Insolvencies.

You can call one of our advisers on 0800 97 88 495 or email info@debtsupportservice.co.uk to find out if you qualify for a Trust Deed.

Please note: Debt Support Service does not administer Trust Deeds.