Scottish Trust Deeds – Information on Trust Deeds in Scotland

A Scottish resident who signs a trust deed is given many advantages via this debt repayment plan. But before a person decides to go this route, it is important to also note the disadvantages of these deeds as well.

During the period that a trust deed exists – usually for three years – a debtor is prohibited from obtaining any additional credit. Further, a trust deed is documented on your credit report, which could make it difficult for a debtor to obtain credit in the future (after the trust deed has ended.) Once a person has signed the deed and if for whatever reason he fails to uphold his payment obligations, there is a chance that creditors will request that he be declared bankrupt and then they may potentially seize his assets.

Any questions regarding the advantages and disadvantages of applying for a trust deed should be discussed with an Insolvency Practitioner prior to going through the application process.

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