When your Trust Deed is "protected", it basically means that no further action will be taken on your account by your creditors.
On average your Trust Deed will last 36 months.
A Trust Deed is a complex legal procedure, so it does vary. But on average it should take about 6 weeks.
If you can no loner afford the monthly payments then you must contact your Insolvency Practitioner immediately. As if you do not keep up your repayments then your creditors can start bankruptcy proceedings against you.
You will not necessarily lose your house, but any equity may be released to go towards paying off your debts.
In principle, a Protected Trust Deed is the Scottish equivalent of an IVA (Individual Voluntary Arrangement).
Throughout your Trust Deed, you will be dealing with a licensed Insolvency Practitioner, who are considered financial experts under law.
We have tried to provide you with detailed information about Trust Deeds on this website. But you are best contacting one of our advisors who will be able to talk you through your options.
Once the term of your Trust Deed is complete, any remaining debt is written off.
No, any interests or charges on your accounts will be frozen from when your Trust Deed is agreed.
Yes, a Trust Deed will mean that your credit rating will be badly affected, but if you are making monthly payments that are lower than the contracted amount or have missed payments then your credit rating is already damaged.
It will cover your unsecured debts. But a Trust Deed will not include any secured debts, such as a mortgage or secured loan.
No, it is a legal process that is agreed by your current creditors to repay your debts. You will not borrow any additional money with a Trust Deed.