Deed of trust, The first step to financial Freedom
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The deed of trust (otherwise known as a trust deed) is becoming more and more popular north of the border in Scotland. These are in effect the Scottish equivalent of the IVA and as the economic downturn continues to bite across the UK we have seen application numbers mushroom with experts forecasting a significant increase in the future. So what exactly is a deed of trust?

A deed of trust, otherwise known as a Scottish IVA, is in effect an agreement between individual and their creditors which covers any future contributions they can make to paying off their debts. This is legally binding and there are certain penalties if the parties involved do not abide by the terms. In effect a trust deed is a halfway house between bankruptcy and carrying on as normal (where a person is in significant financial difficulties), and can often give the debtor breathing space to sort themselves out.

There are implications with regards to credit ratings on credit scores but for those in severe financial trouble this is the least of their worries. Credit ratings and credit scores can be rebuilt in the future but a trust deed is nowhere near as fatal to your credit rating as bankruptcy. For more and more people in Scotland the deed of trust is becoming a vital tool enabling them to draw a line under their difficulties and start to build for the future.

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