Trust Deed Process

A Trust Deed is a complex legal process and can seem very complicated.  Debts Management understand that you need to understand any debt solution before you sign on the dotted line.

Below gives you a brief explanation of a Trust Deed Process, but more more information please call our expert advisors on 0808 131 9112.

Step-by-Step Trust Deed Guide:

1: You will need to compile a full list of creditors with all the outstanding debt owed, and how much you can afford to repay each month.

2: Your Insolvency Practitioner (otherwise known as an IP or a Trustee) will go through the list and write to your creditors offering a proposal.

3: If over two thirds of your creditors, by debt value, agree to the Trust Deed Proposal then it will be automatically accepted. From this point onwards all interest and legal action will stop.

4: From here on, you just need to pay your monthly Trust Deed payment, mortgage and any secured debts. Any creditor correspondence will be dealt by your IP.

5: Once your 36 months is up, you can enjoy being debt free!

Entering into an IVA may adversely affect your credit rating for up to six years from the date of approval.

Your property will be protected within an IVA but you may be required to release all or part of any equity during the period of the arrangement.

Failure to complete the term of an IVA can result in bankruptcy.

(In Scotland, a PTD is the equivalent to an IVA.)