Will my details be published if I enter a Trust Deed?
You may be eligible for a Trust Deed if you are a resident of Scotland and you can't afford to repay your unsecured debts of at least £5,000 (or £10,000 if they’re joint debts) within a reasonable amount of time.
A Trust Deed will allow you to combine all of your unaffordable monthly debt repayments into one, more affordable sum each month. This sum will be decided by figuring out how much you have left over after your essential living costs. You'll then pay back as much as you can afford, normally for four years, after which any remaining unsecured debt is written off.
Once the terms of your Trust Deed have been decided, the details will be published in the Register of Insolvencies. However, this isn't as serious as it may sound, because people you know are very unlikely to come across it.
What is the Register of Insolvencies?
The Register of Insolvencies is an online register of insolvent people and businesses in Scotland. To see the information it contains it’s necessary to register so it is not a site that most people will visit.
Details that will be published in the Register of Insolvencies include your name and address, the date you signed the Trust Deed, and the Trustee who is overseeing your Trust Deed.
What happens during a Protected Trust Deed? Once you start a Trust Deed, you will make one affordable payment each month, which will be shared out among your lenders (minus fees for the service). You will also be protected against legal action from your lenders.
Once you successfully complete your Trust Deed (usually after four years) any remaining unsecured debt will be written off.
There is more information about Trust Deeds, and how they work, on this page.
What are the disadvantages?
Though a Trust Deed may help you get out of serious debt problems whilst avoiding bankruptcy, it also has disadvantages. If you are a homeowner, for example, it is likely that you will be expected to release some of the equity in your home. If you can’t release any equity then your Trust Deed could be extended by 12 months.
Entering a Trust Deed is a big decision, so if you're not sure it's best to talk to an expert. Fill in our fast-track call back form at the top of this page, and a friendly debt professional will be in touch to discuss all your options.
Article Updated 12/12/2013