Trust Deed Pros and Cons
Table of Contents
Trust Deed Pros - What Are The Advantages of a Trust Deed?
When considering whether a Trust Deed is right for you, there are several Pros and Cons to consider:
There will be no upfront or surprise fees.
You unsecured creditor will no longer be able to contact you or take any action against you.
All charges and interest relating to the debt is frozen.
You will make one single payment each month.
At the end of the Trust Deed, all remaining debt included in the agreement will be written off
- You may be able to keep your home rather than sell it.
Trust Deed Cons - What Considerations Do I Need To Make?
When thinking about whether a Trust Deed is right for you, here are some things to consider:
Only certain debt can be included in the Trust Deed
If you have equity in your property, then you could be forced to re-mortgage, release the equity and have it included in your Trust Deed
- You could be forced to sell your home
If you fail to make payments, then your Trust Deed could fail. This means that your creditors would be entitled to force you into sequestration.
If your financial situation changes then your IP could request an amendment to your arrangement with your creditors. If they refuse to comply with this, then your IVA could fail.
IVAs are added to the Insolvency Register, which is a public record
Your Trust Deed will be advertised in local press – it is usually only noticeable to people who know where to look.
What If I Don't Live In Scotland?
Trust Deeds are solely available to residents of Scotland. If you are a resident of England, Wales or Northern Ireland then visit our sister site IVA4Me.co.uk to find out about the pros and cons of an IVA.
Trust Deed Guides and Information
What Is A Trust Deed?
Only available to residents of Scotland, a Trust Deed is a legally binding, formal debt solution. It is designed for people who are struggling with debts of £5,000 or over.
Is A Trust Deed Right For You?
Whether a Trust Deed is right for you or not will largely depend on your personal situation e.g. debt level, number of creditors, affordability etc.
Does A Trust Deed Have Fees?
Setting up a Trust Deed does incur some costs; however, you will not be expected to pay anything up front at the beginning of the arrangement and there will be no surprise costs at the end of the arrangement.
How Does A Trust Deed Work?
A Trust Deed is a debt solution where you agree with your creditors to pay all or part of your debts. This agreement is set up and managed by a Trustee, who will receive an agreed monthly payment from you and will divide it amongst your creditors.
How Do I Apply For A Trust Deed?
Signing up to a debt solution is a significant event in your life, so it is important to gather as much information as possible, so you can make an informed decision.
Trust Deed Pros and Cons
Like things in life, Trust Deeds carry with with them benefits and things to consider. Take a look at our article to find out whether a Trust Deed is right for you.
Trust Deeds – Which Debts Can Be Included?
Many kinds of debts can be included in a Trust Deed. They are limited to unsecured debts but by solving your unsecured debt problems, you may find paying any secured debt much easier.
