Scottish Trust Deeds offer a more manageable way for individuals in Scotland with unmanageable debts, to repay what they owe at a lower level.
Essentially, a Scottish Trust Deed enables you to make a formal proposal to your creditors to clear your debts. Unless one of your creditors with a claim to more than one third of your total debt has an objection, your proposal will be approved and become legally binding. Through a Scottish Trust Deed, you will make one repayment to a trust, who will then repay your creditors on your behalf.
Why Scottish Trust Deeds are a favourable debt solution
For many individuals, Scottish Trust Deeds are the most favourable way of dealing with debt. They provide a more formal agreement than a debt management programme, do not require a credit check and can be entered into even if you have CCJs (County Court Judgements) against you.
Debtors are able to apply for a Scottish Trust Deed regardless of whether they are a homeowner or a tenant.
It also protects you from further recovery action from your creditors.
It is important however to remember than Scottish Trust Deeds only cover your unsecured debts and arrears and are only available to individuals in Scotland. Additionally, if one creditor to whom you owe more than one third of your total debts has an objection, your proposal will fail.
Further information on how to apply for a Scottish Trust Deed can be obtained by contacting Legal Advice Helpline.
If you're based outside Scotland, you may want to find out more about debt management plans, IVAs (Individual Voluntary Arrangements) and debt consolidation loans.