Trust Deed - The Pros
A Trust Deed is the Scottish alternative to an IVA. As it is a legally binding financial agreement, it is important that you are aware of any Pros & Cons.
For help to see if a Trust Deed is the right choice for you, please call us free on 0808 131 0039.
Debt Free Trust Deed Benefits:
- In comparison to bankruptcy, a Trust Deed means that you remain in control of your finances and your assets
- Only pay back what you can afford over a 36 month period.
- Just one monthly payment.
- At the end of the Trust Deed term, any remaining debt is written off.
- Creditors cannot add any further interest or charges to your debt.
Entering into an IVA may adversely affect your
credit rating for up to six years from the date of approval.
Your property will be protected within an
IVA but you may be required to release all or part of any equity during the
period of the arrangement.
Failure to complete the term of an IVA can
result in bankruptcy.
(In Scotland, a PTD is the equivalent to an IVA.)