Because a Trust Deed (TD) is a formal legal agreement, you cannot set one up on your own. You need an insolvency practitioner (IP) licensed in Scotland to help you.

The best way to implement a TD is to first speak to Beat My Debt who will look at your circumstances and help you decide which debt solution is right for you. If you have decided that a TD is for you, we will introduce you to an IP in Scotland.

To find out more click on the following links or continue reading below.

Where to start

• Ask the experts – use our Trust Deed Forum
• Call us now – speak to one of our advisors in confidence to see if a trust deed is right for you.

Take the first step to beating your debt NOW – Call us on 0800 077 6180

Choose the right Insolvency Practitioner

If it is decided that a Trust Deed (TD) is the right solution for you, Beat My Debt will be able to recommend an Insolvency Practitioner (IP) who is either local or experienced in dealing with the special circumstances of your situation.

For example, if you are self employed, you will normally need to use an Insolvency Practitioner who has experience of working with self employed people.

If you want to find your own insolvency practitioner , you can do so. The easiest way to do this would be to search for local insolvency practitioners in your area on the internet. However, taking the recommendation of Beat My Debt will mean that you will be working with an IP who is approved by Beat My Debt and experienced in dealing with people with your kind of debt problems.

THE NEXT STEPS

The insolvency practitioner or one of their representatives will need to meet with you in your home. During this meeting they will discuss your financial situation with you and make sure you understand what a TD will mean for you.

Trust deed proposal drafted and signed

If after you have met with the insolvency practitioner you agree that you want to continue with the Trust Deed process, the IP will draw up a proposal on your behalf. This document details all of your financial circumstances.

You will be asked to sign this proposal. Once you have done so, you are agreeing to transfer all of your significant assets to the Insolvency Practitioner which subsequently can be sold to repay your creditors.

If you are a home owner, your assets will normally include 100% of the equity you own in your property at the time the Trust Deed document is signed. They may also include an expensive car, investments, and any other significant assets. However, normal household items such as fridge freezers and washing machines are excluded.

Trust Deed advertised

Following the signing of the Trust Deed proposal, the Insolvency Practitioner will advertise your Trust Deed in the Edinburgh Gazette.

This is a Government publication subscribed to by solicitors, accountants, banks and various other financial institutions. It is not generally read by the public.

Creditors contacted

Once the advertisement has been placed, the Insolvency Practitioner will then write to your creditors and send them a copy of your proposal detailing your financial circumstances, explaining the Trust Deed process and setting out the likely amount that they will be paid over the lifetime of the Protected Trust Deed.

Creditors have 5 weeks from the date of the advertisement to object to the Trust Deed.

Trust deed protected

Provided that no more than one third in value or a majority in number of your creditors object to the terms proposed within the five week period, the Trust Deed will become "Protected", binding all creditors to its terms.

Discharged from Trust Deed

Once you come to the end of your PTD, given you have met all of your responsibilities under the agreement, your IP will have some administrative work to close your case. This includes calculating the amount due to each creditor, issuing payments to the creditors and writing to you with confirmation of your discharge using a Form 5.

The amount of time that it will take for you to receive your letter of trust deed discharge will vary from company to company, but four to eight weeks is a realistic guide upon which to base your expectations.

What could delay your discharge?

• The Trust Deed was extended over a longer period
• Payments were missed and it needed to be extended
• ssets such as equity in your property need to be addressed

Generally if none of the above apply, your discharge should be fairly smooth.