Trust Deed Criteria

Trust Deeds are only for Scottish residents with unaffordable unsecured credit repayments and who are in threat of sequestration (Scottish bankruptcy).

Who is Eligible for a trust deed?

Trust Deeds are available to all individuals, sole traders and business partners, Domicile in Scotland who are Insolvent and experiencing unaffordable debt repayment problems.

Domicile: An individual can be resident in more than one country at the same time, but can be domiciled in only one. Domicile can involve complex issues of law, but it is normally considered to be where a person's permanent home is located.

If you have left the UK or Scotland, but have lived in Scotland during the previous 12 months, you are still eligible for a Trust Deed.

Insolvent: To be insolvent you need to have debts your are unable to pay as they fall due, and importantly, your debts also outweigh your assets. You are not insolvent if your have debts of £30,000 but have assets (such as equity in property) of greater value.

Minimum Level Of Debt for a trust Deed.

There is no pre-determined level of debt, or minimum payments, required to allow a trust deed to proceed.  Every trust deed proposal is specific to individual circumstances.

The appropriateness of a trust deed will be based on a number of factors including assets, debt due to creditors, income and expenditure.

It is possible to enter into a trust deed if you have no disposable income, but normally only where you have assets which can be realised to make contributions to your creditors e.g. equity in your home.

You may enter into a trust deed where the only contribution is from a third party, such as a member of your family or a friend.

Live in England
Or Wales ?

Please see IVAs.
Trust Deeds are for Scottish Residents Only.

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