Trust Deed

Write off unaffordable unsecured debt

What's a Trust Deed?

A Trust Deed is an agreement with your lenders that enables you to repay as much of your unsecured debts as possible over (normally) three years, and writes off the rest.

Unaffordable debt written off on completion

Lenders will actually write off the debt you can't repay during your Trust Deed

Keep your home

Your Trust Deed payments won't take up any money you need for your mortgage

No arrangement fees

We don't charge an initial fee - so you'll start repaying your debts straight away

To find out whether a Trust Deed could help you, use the Solution Finder (on the right), or call us on 0800 505 3848.

Find out if you qualify

Answer a few questions and we'll call you to discuss your options

£2,000

Approx. how much money do you owe?

£,000

£70,000+

Are you a homeowner?

Yes

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Frequently asked Trust Deed questions

How does a Trust Deed work?

A Trust Deed is a form of insolvency. It's a legally-binding contract between you and your lenders which allows you to repay your unsecured debts without entering into bankruptcy.

You'll pay as much as you can towards your debts for an agreed time period - usually three years. In return, you'll be protected against legal action regarding your debts, and once the agreement has successfully finished, any remaining unsecured debt will be written off.

Is a Trust Deed right for me?

A Trust Deed is only available to Scottish residents. It could be the right option for you if you have no realistic means of repaying your debts in full, but you can still afford to commit to (manageable) monthly payments.

However, like any debt solution, a Trust Deed isn't for everyone. Our expert debt advisers can help you decide which solution is right for you.

Will my home be safe?

Unlike bankruptcy, a Trust Deed is unlikely to result in the forced sale of your home, so it could be your best option if you're a homeowner.

However, you may be required to release any equity in your home so you can pay more towards your debts.

How do I apply for a Trust Deed?

Simply fill in our call-back form above and one of our expert debt advisers will be in touch shortly. Or if you don't want to wait, call us on 0800 505 3848.

How much will I have to pay each month?

You'll only pay what you can afford. Your new monthly payments will be calculated according to what money is left after you've taken care of your bills and other essential living costs. This should ensure that you don't fall behind on anything important.

What's more, your payments could change with your circumstances. If your available income increases, you'll be able to pay more each month; similarly, if your available income falls, you may be able to reduce your payments accordingly (up to a point).

What are the disadvantages of a Trust Deed?

A Trust Deed is an insolvency solution that will be recorded on your credit history for six years. You're likely to find obtaining further credit very difficult during that period of time.

Although a Trust Deed allows you to stay in your home, if you're a homeowner you may be expected to release most of the equity in your home as part of the agreement, with the money raised going to your unsecured lenders.

Just remember that not getting the help you need could have even more serious consequences.

Could a Trust Deed help me?

You may qualify for a Trust Deed if:

You have more than one unsecured debt
You can afford to make (smaller) monthly payments towards those debts
You can't afford to repay your debts in full within a reasonable period of time

However, keep in mind that there could be another solution that's better for you. Talk to one of our advisers on 0800 505 3848 to find out which debt solution best meets your needs.

How a Trust Deed works

A Trust Deed tackles all your unsecured debts at once and helps you repay them by making one affordable payment per month. This payment goes to your Insolvency Practitioner (IP) - the person responsible for looking after your Trust Deed - and they will distribute the agreed payments to each of your lenders.

Your Trust Deed will become 'protected' (a Protected Trust Deed) unless 50% of your lenders, or 33% by debt value, reject the agreement. A Protected Trust Deed is legally binding, so your lenders can't take any further action against you as long as you keep up with your monthly payments.

Most Trust Deeds last for three years (meaning you'd make 36 monthly payments in total). On successful completion, the unsecured debt you haven't repaid is written off.

We have in-house Insolvency Practitioners who can help you arrange a Trust Deed. Once it starts, we will be here to answer any questions or queries you may have. We can also act as a point of contact between you and your lenders for the duration of your Trust Deed, so you won't have to contact them directly.

Call us on 0800 505 3848 for more information on Trust Deeds and the other solutions we provide.

Downsides of a Trust Deed

Like any debt solution, a Trust Deed has a few disadvantages. In particular, it will have a significant impact on your credit rating - records remain on your credit history for six years, during which time obtaining further credit is likely to be very difficult.

If you're a homeowner, you may be required to release most of the equity in your home as part of the agreement - although you won't be at risk of repossession. If you are unable to remortgage to release equity, you may be required to make monthly payments for longer.

You should consider these downsides before you go ahead, but keep in mind that not getting the help you need could have even more serious consequences overall.

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