Scottish Trust Deeds
A Trust Deed is the Scottish equivalent of an IVA. A trust deed is a legally binding agreement between you and your creditors to repay your debts at an agreed affordable monthly figure. In order to work successfully, the Trust Deed is required to be supervised by a qualified Insolvency Practitioner who becomes known as the Trustee.
The advantages of a Trust Deed are that it takes the pressure off, as all correspondence and queries are dealt with by the Trustee. This places the individual rather than the creditors in control of their financial situation. The Trust Deed also prevents the creditors from taking further steps to recover their debts and freezes interest on the accounts, therefore reducing costs to both the creditor and the individual. Financial and personal circumstances vary, so the implications of the trust deed will be different for each individual. Trust Deeds are only available to Scottish citizens. For the English and Welsh equivalent, please see the page on Individual Voluntary Arrangements.