What is a Trust Deed?

A Trust Deed (known as a Protected Trust Deed or PTD) is a formal arrangement between debtors and their creditors, and is used in Scotland only. If you are not a resident of Scotland when you need to look at Individual Voluntary Arrangements, which is the alternative for the rest of the UK.

Trust Deeds allow the debtor to be protected from bankruptcy proceedings, known as sequestration. As long at the terms and conditions of the Trust Deed is met then not further action can be taken against the debtor. If you are considering a Trust Deed then it is important that you seek expert advice as the implications of a Trust Deed could vary depending on your circumstances.

Benefits of a Trust Deed are that the debtor takes better control over their financial situation by making a payment to their creditors which they can realistically afford. You can also be debt free in as little as 36 months. But there are Trust Deed implications that you need to think of too, such as having to commit to making fixed payments.

Individual Voluntary Arrangement can also offer you information how Trust Deeds and help to work out if this is the right solution to your debt problems. Please contact our team today on freephone 0800 048 1766