What is a Trust Deed?
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A Trust Deed is a legal arrangement which is available to those living in Scotland. It is commonly seen as an alternative to bankruptcy and allows debtors to protect themselves whilst looking to agree an arrangement with creditors which will see them receive a portion of their outstanding debts.

Trust Deeds are becoming more and more popular in Scotland as they offer breathing space to give the underlying victims time and space to try to reorganise their financial affairs. Traditionally what happens is the trustees of the Trust Deed (often the insolvency practitioner looking after the case) will write to your creditors informing them that your assets are XYZ, your debts are XYZ and you’re looking to put an arrangement in place.

Upon sending the Trust Deed application to your creditors there would then be a process whereby creditors will have the chance to examine the situation in more details and finally arrive at an answer in terms of the Trust Deed. So long as there are no significant rejections of the Trust Deed your insolvency practitioner will then be in a position to formalise the Trust Deed and you will be protected from further harassment and contact from your creditors

A Trust Deed will normally last from between three years and five years at the end of which, assuming that you have co-operated fully, all of your outstanding debts will be written off.

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