A Trust Deed is a formal and legally binding document where the debtor voluntarily transfers their assets to a trustee to manage for the benefit of the creditors.
Like an IVA, a Trust Deed arrangement has a set period of regular affordable repayments towards the oustanding debts. The minimum repayment period for a Trust Deed is 36 months at the end of this term, as long as the debtor has met their obligations and it is not extended, they are discharged and any oustanding unsecured debts are written off.
A Trust Deed needs to be ‘Protected’ in order to prevent creditors from taking further action aginst the debtor, such as bankruptcy. A qualified Insolvency Practitioner is required to be the trustee of a Protected Trust Deed. All known creditors must be notified and the action properly advertised in the Edinburgh Gazette.
|To qualify you must currently live in or have lived in Scotland within the last 12 months, or have a place of business in Scotland.