This is a process administered by a Licensed Insolvency Practitioner.
A Trust Deed is generally viewed as a suitable alternative to sequestration (bankruptcy). By signing a Trust Deed you are seeking a responsible solution to resolve your debt problems. It is a legally binding agreement between you and a Trustee, and is for the benefit of the creditors.
A Protected Trust Deed gives you legal protection from your creditors. It stops creditors from taking further action for the recovery of debts, including sequestration, wages arrestments, attachments or exceptional attachments
Other benefits:
- It is not a court process; therefore does not involve any court appearance;
- You stop paying your debts, although you should continue to pay your household bills and expenses, including your mortgage, rent and council tax;
- You no longer have to deal with your creditors or debt collectors. They should stop phoning and sending you threatening letters within a few weeks of signing a Trust Deed. Future correspondence should be sent to your Trustee.
- Generally the Protected Trust Deed will last for three years after which you will be discharged from your debts
In order for this to work, the management of your financial affairs is handed over to an Insolvency Practitioner to deal with. When you sign a Trust Deed, s/he becomes your Trustee. It is essential that you co-operate fully with your trustee and advise him/her of all your debts and give a full list of your assets.
The Trustee's main duty is to realise your assets and/or secure a contribution from your income to accumulate funds to pay your creditors. It is unusual for creditors to be paid in full, however the eventual sum paid to the creditors will not affect your discharge at the end of the Protected Trust Deed period.
If you would like to know more and would like to discuss the benefits and implications please click here to provide your contact details and we will call you to discuss and arrange a free confidential consultation or alternatively call:
- Nikki Williams Tel: 0141 418 1126
- Lorna Bingham Tel: 0131 225 3688
- Pat Smith Mobile: 07595 244 857
- Stevie Hearns Mobile: 0779 533 7217
Important information
There are a number of points to note before signing a Trust Deed:
- The Trust Deed is advertised in the Edinburgh Gazette. This is not a journal or newspaper which can be bought at your local newsagents.
- Your credit rating may be adversely affected.
- Creditors may object to the Trustees proposals; as a result, sequestration becomes an alternative solution.
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