Struggling with soaring debt problems? If yes, then you may want to speak with a trusted advisor such as an IVA company or Insolvency Practitioner (IP) who will analyze your situation and suggest the best path to a debt-free future. If you live in Scotland, one of the solutions that an IVA company or IP may suggest for your debt problems is a trust deed.

Provided you comply with the terms of the agreement, a trust deed is an agreement that binds your creditors and prevents them from taking any further action against you to recover any debts that you might owe them.Additionally, the date you sign the trust deed, all interest and charges on the debts are frozen. They are some other questions about trust deeds that people in Scotland frequently ask. We answer those questions here.

Scottish Trust Deeds FAQs and Their Answers

A highly used debt management solution in Scotland, a trust deed is similar to an IVA and it is based on Scotland Insolvency legislation. Although they exist under the Government insolvency legislation, Scottish Trust Deeds are not a ‘officially approved debt solution’. Instead, they are a formal and legal agreement that is subject to regulatory control which helps deal with the built up personal debt. There are some other questions regarding Scottish Trust Deeds that people often ask. We answer those questions next.

How Much Must I Owe to Enter into a Trust Deed?

There is no minimum statutory limit, so a Trust Deed is an option for anyone in Scotland who is struggling to pay their debt. While there is no minimum debt level requirement for a trusted deed, debt levels lower than £5000 are more suited to other debt solutions.

Will Entering into a Trust Deed Have an Impact on My Credit Rating?

A Trust deed will have a significant impact on your credit ratings, which will last for six years. During this time, you may find it incredibly hard to obtain credit.

How Do Set Up a Trust Deed, How much time Will It Take to Set Up, and How Long Will It Last?

The process to set up a trust deed is as follows:

• Enter details onto the website to get a call back
• Talk to the advisor to understand all the options available to you and the make an informed decision about whether to proceed with a Trust deed
• Drafting of your case by the IVA company or IP after they receive the necessary documentation
• Receiving a checklist of necessary information from your advisor
• Receiving a call from the IP or IVA company to confirm the accuracy of the details in your paperwork
• A final meeting with your advisor to finalize the paperwork
• Working with your advisor to set up your trust deed and stop paying to your creditors directly

A Trust deed typically takes six weeks to set up or become a protected trust deed. During this time, the creditors reviews the terms of the trust deed and then either approves the arrangement or makes objections. The arrangement typically lasts for four years but may be increased in some cases.

Above are the 3 most frequently asked questions (FAQs) about Trust Deeds in Scotland. However, there are several other questions that you may have about trust deeds in Scotland and an experienced IP or IVA company such as us is well-informed to answer them. So, you may want to get in touch with us today to have your questions about Scottish Trust Deeds answered.