What Debts Can Be Included In A Trust Deed?

A Trust Deed can be a good solution to overcoming large debt, but it is not a magic wand for wiping out all forms of debt. A Scottish Trust Deed will only cover unsecured debts such as unsecured loans, overdrafts, credit card bills, and store cards.

Also, Scottish Trust Deeds will not cover any secured debt such as any loans secured on your home or any hire purchase agreements. It is also worth bearing in mind that if you want to include any unsecured debt that you hold with your own bank, then as a result of the Trust Deed they may close, restrict or even downgrade your existing account with them.

It is likely though that your Trustee will be able to set you up a basic alternative bank account that offers a debit card facility.

If you happen to have any equity available in your home, the creditors may only accept your Trust Deed proposal subject to you releasing any equity in your property in order to put towards the outstanding unsecured debt.

Likewise, if you own a car that you do not use for work, again you may be asked to sell this. Similarly if you regularly pay into a private pension you may be asked to stop paying into the pension and to put that money towards your outstanding debt.

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About Trust Deed.org

TrustDeed.org was launched to help provide debt information and guidance for people living in Scotland.

We know that being heavily in debt can significantly affect your quality of life. But TrustDeed.org aims to help to relieve some of the burden by giving you the right tools and information you need to begin reducing your monthly repayments.