What is a Scottish Trust Deed?
A Trust Deed (more properly a Protected Trust Deed) is the Scottish equivalent of an IVA. It is a formal arrangement that is used in Scotland where a consumer grants a ‘deed’ in favour of the trustee which transfers their assets to the trustee for the benefit of creditors. It will normally stop legal action and protect you and your home. Provided certain conditions are met, the Trust Deed may be registered as “protected”, thereby preventing creditors from petitioning for the debtor’s sequestration. The main disadvantage of a Trust Deed is that existing arrestments and other diligence may continue to be effective, home owners would require to release the equity in their home. The advantages are that the debt is frozen on the date the Trust Deed is signed and the balance of debts are legally written off once the Trust Deed is brought to and end. Upon completion of the 36 month period any balance of debt is written off and creditors cannot pursue you for interest or the balance. If you li
