Trust Deed FAQ

• What is a Trust Deed?
• Can I do this on our own?
• Who deals with my Creditors?
• Can anyone apply for a Trust Deed?
• What is the minimum debt allowed before I can enter in to a Trust Deed?
• Does every Creditor have to agree to the Trust Deed?
• How long will the Trust Deed last?
• Are all of my Creditors bound by the Trust Deed?
• How do I prevent Court Action (also known as Diligence) being taken out against me?
• Who pays for the Trust Deed?
• Will I have to sell my home?
• Can I enter in to a Trust Deed even if I do not have any assets?
• Will my Trust Deed be advertised in the Press?
• Can I remain a Company Director of a Limited Company?

Can I do this on our own?
No, you would need to instruct an Insolvency Practitioner (IP) to act on your behalf; they become as your Trustee.

Who deals with my Creditors?
Once you have instructed an Insolvency Practitioner as Trustee they will deal with all your Creditors for you.

Can anyone apply for a Trust Deed?
No, only residents of Scotland can apply for a Trust Deed.

What is the minimum debt allowed before I can enter in to a Trust Deed?
There is no minimum or maximum amount of debt.

Does every Creditor have to agree to the Trust Deed?
No, as long as 67% of the Creditors agree the order will go ahead.

How long will the Trust Deed last?
A Trust Deed will normally last for three years.

Are all of my Creditors bound by the Trust Deed?
No, only the ones who have agreed to it.

How do I prevent Court Action (also known as Diligence) being taken out against me?
You can prevent this by having the Trust Deed registered as Protected.

Who pays for the Trust Deed?
The fees involved will be taken out of the Estate of the Trust Deed.

Will I have to sell my home?
In certain cases your home will be sold to release equity to help pay off your creditors. Check with your Insolvency Practitioner before entering in to a Trust Deed.

Can I enter in to a Trust Deed even if I do not have any assets?
Yes, as long as you can make monthly payments towards your debts.

Will my Trust Deed be advertised in the Press?
Yes, if your Trust Deed becomes Protected it will be advertised in the Edinburgh Gazette.

Can I remain a Company Director of a Limited Company?
No, you would not be able to remain as a Director. You are also forbidden to trade as a Sole Trader.