THE ADVANTAGES OF A TRUST DEED

1. Single affordable payment 

A Trust Deed allows you to make a single affordable payment to your creditors each month. This is paid directly to your Insolvency Practitioner who will deal with your creditors on your behalf. All future letters and correspondence from your creditors will be dealt with by your Insolvency Practitioner.

2. No further creditor action

When your Trust Deed becomes protected, pressure from your creditors goes away. Your creditors cannot take further action against you to recover their debt, or add further interest or charges to your accounts. This gives you peace of mind that once the Trust Deed is completed you will be left debt free.

3. Debt written off

A Trust Deed will usually last just three years and at the end of that term the remaining debt is effectively written off.

4. Discreet procedure

Unlike sequestration (bankruptcy in Scotland) a Trust Deed is not advertised in local newspapers. It is possible for individuals who have Protected Trust Deeds to continue to hold certain public offices, remain as directors and for companies to continue to trade.

5. Better return for creditors

A Trust Deed is less costly than sequestration, and therefore should result in a better outcome for creditors.  

Where to start

• Choose the solution – Use the “Which way should I turn” form to get your FREE DEBT REPORT
• Ask the experts – use the Beat My Debt 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 free on 0800 077 6180

THE DISADVANTAGES OF A TRUST DEED

1. Credit rating effected

The Trust Deed will be recorded on your credit file. This means that you will not be able to take further unsecured borrowing for the period of the Trust Deed. Once the Trust Deed is completed (normally after 3 years), you can borrow again. However, it may take some time for your credit rating to repair - normally up to 6 years.

2. Home equity must be released

If you are a home owner, 100% of any equity in your property at the time your Trust Deed is protected will have to be realised for the benefit of your creditors.

3. Failure may result in bankruptcy

If you fail to adhere to the terms of the Trust Deed, bankruptcy (or sequestration) proceedings may be taken against you. As such, your home and other assets may be at risk.

4. Restrictions for Sole Traders

If you are self-employed, there may be some restrictions on your ability to trade. A Trust Deed can however, allow for alternative arrangements to be made available in order to allow trading to continue for future income.