Which Debt Can I Include In a Trust Deed?
Trust Deed Debts - Which Debts Can Be Included In A Trust Deed?
With A Trust Deed You Could Write Off Your Unaffordable Debt
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What Debts Can Be Included in a Protected Trust Deed?
Many kinds of debts can be included in a Trust Deed. It is important to realise that this is not limited to borrowings to finance companies but can also include HMRC debts, Council Tax debts and even debts to friends or family. It is, however limited to unsecured debts, so any debt secured against a property or vehicle, for example, would not be allowed to be included.
During the initial application process, your advisor and Trustee will be able to offer you advice regarding which of your creditors will be able to be included in the Trust Deed arrangement.
Which Unsecured Debts Can Be Included in a Trust Deed?
Below is a list of debts that can be included in your Trust Deed.
The following debts can be included:
- Store Card Debt
- Credit Card Debt
- Personal Loan Debt
- Overdrafts Debt
- Council Tax Debt
- Income tax/National Insurance arrears
- Utility Bills Debt
- Debts relating to overpayments of benefits or tax credits
- Payday Loan Debt
- Debts to friends or family
What Unsecured Debts Can Not Be Included in a Trust Deed?
The following debts are unsecured but would also cannot be included:
- Court Fines
- TV licence Debt
- Child Support Arrears
- Any debt that has been incurred through fraud
Which Secured Debts Can Not Be Included in a Trust Deed?
Any debts secured against property or goods e.g. vehicles or machinery woulds not be able to be included. This is due to the fact that your creditors, in these circumstances, would most likely choose to repossess the purchased goods:
What If I'm Not A Resident of Scotland?
Trust Deeds are solely available to residents of Scotland. If you are a resident of England, Wales or Northern Ireland, visit our sister site IVA4Me.co.uk to find out which debts can be included in an IVA.
Trust Deed Information and Guides
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.
