Apply for a Trust Deed
We can help you apply for a Trust Deed. Call us on 0161 667 2599 and we'll help you get started - or complete the form on the right to find out whether a Trust Deed is right for you.
A Trust Deed could make your debts affordable again. Also, if your lenders agree to the arrangement, and it is successfully completed, it will write off the unsecured debts you can't afford after four years. You'll also be protected against further action from your lenders.
Who can apply for a Trust Deed?
You may qualify for a Trust Deed if you meet the following criteria:
- You are based in Scotland
- You have unsecured debts of at least £5,000 that you can't afford to repay in full within a reasonable period of time
- You can still afford to make regular monthly payments towards your debts - but these will be reduced so that they fit alongside your other essential living costs
However, if you can't afford to make reasonable monthly payments towards your debts - or if an affordable repayment plan would not enable you to repay your debts in full within the next few years - then your lenders won't agree to a Trust Deed. We offer a range of other debt solutions that could help you.Find out if you could qualify for a Trust Deed here.
The Trust Deed process
Before your Trust Deed can start, one of our in-house Insolvency Practitioners will put together a Trust Deed proposal. This tells your lenders why a Trust Deed is the best option for everyone involved, and shows your lenders how your Trust Deed will work (e.g. how much you can afford to pay each month). Your lenders will expect you to pay as much as you realistically can into your Trust Deed so you may be asked to cut back on your spending.
The proposal must receive approval from at least 50% of your lenders (who are owed at least one third of your total unsecured debt). If this happens, all other unsecured lenders will be included in the agreement, regardless of how they voted. In reality, as long as you genuinely can't afford to repay what you owe, they are likely to agree.
From there, your usual unsecured debt repayments will be replaced with one affordable monthly payment to us. From this, we'll pass on the agreed amounts to each of your lenders (minus our monthly fee).
If you're a homeowner, some of the money you've put into your home (your 'equity') may be released towards the end of the agreement to help repay your debts. This will not affect you if you rent your home. If you can't release equity for any reason, your Trust Deed could be extended to help you repay more of what you owe.
You should also bear in mind that like most debt solutions, a Trust Deed will have an impact on your credit rating. Your name will appear on the Register of Insolvencies and records will be visible on your credit history for six years after your Trust Deed starts. This will make getting further credit difficult during that time. If you fail to meet your Trust Deed commitments, you could put yourself at risk of bankruptcy.Find out more about how a Trust Deed works.
Write off unaffordable debts with a Trust Deed
The idea of a Trust Deed is that you'll repay as much of your unsecured debts as you can in affordable monthly payments, normally for four years (although the time can sometimes vary). At the end of that time, if the Trust Deed concludes successfully, the unsecured debt you haven't been able to repay is written off.
Here are some of the other benefits of a Trust Deed:
- Freezes interest - so your debts will no longer be able to grow.
- Makes your monthly payments affordable - you'll only ever pay as much as you can afford alongside your other essential living costs, such as food, transport and bills.
- Stops further action from lenders - they will be legally prevented from trying to make you bankrupt or asking for further payments (other than those agreed in your Trust Deed). If you receive any letters or calls, it's important to forward them onto us so we can also deal with them for you, you can also let the lender know you are on a Trust Deed with us. Please remember, if you fail to keep to your Trust Deed arrangement, you could put yourself at risk of bankruptcy.
Get in touch
Want to know more about applying for a Trust Deed? Call us on 0161 667 2599 and we can help you get started.