What is a Trust Deed?
A trust deed is a formal debt solution that lowers your monthly payments into a manageable amount and typically lasts 48 months. After this time, the remaining debt is written off. A protected trust deed means creditors have agreed to the arrangement. It means they cannot chase you for the money and cannot take court action against you to recover the debt.
Write OFF up to 85% of your debt
Pay back what you can afford in typically 48 months.
Have just one affordable payment every month covering all debts
Keep your home & car
Stop & reduce creditors and collection agency calls
Freeze interest & charges on your debts
How It Works
Advantages of a Trust Deed
- Pressure from creditors is removed.
- All correspondence and queries will be dealt with by the Trustee.
- You can agree the proposal which will be put to creditors with your Trustee, therefore retaining a degree of control over your finances.
- A Trust Deed is less costly than sequestration, and should result in a better outcome for your creditors.
Disadvantages of a Trust Deed
- Existing arrestments continue to be effective. Although Councils who carry out earnings arrestments are generally willing to consider lifting arrestments upon Trust Deeds gaining protection.
- You cannot be a company director of a limited company unless the company’s Articles of Association state otherwise.
- The arrangement is binding on you as well as your creditors. If you were to default on the arrangement then the Insolvency Practitioner can petition for your Sequestration.
- Entering into any arrangement with your creditors may affect your credit rating.
- Creditors are not obliged to accept a proposal for a Trust Deed. However, the Trustee will negotiate with all of your creditors.