The Trust Deed will show on your credit file as a default when you go forward with the plan and will stay there for 6 years from the day to become protected. After you are discharged from the plan it will then show that you have settled with the creditors.
When you enter into a Trust Deed all assets will become legally protected. If we cannot protect your assets we would not put you forward for a Trust Deed.
The minimum length of the plan must be at least 48 months, unless you are able to pay the plan off in full as a lump sum payment.
As long as you keep in touch with your insolvency practice and keep to the terms of the agreement then your work won’t be notified. It is only when a client refuses to pay the plan and does not keep in contact an employer may be contacted
Depending on the size of the lump sum this would need to be taking into the plan, but if the sum is large enough this could help you be discharged early.
As long as you keep in touch with your Insolvency Practice and inform them of any changes in circumstances they can put your plan on hold for up to 6 months at a time.
A Trust Deed is Scottish Government Legislation which is legally binding. This means once you enter into the plan you’re legally protected and your creditors can no longer take further action to recover the debt. A trust Deed is usually a 48 month plan where you only pay back what you can afford.
A Trust Deed can stop or even lift any wage arrestment as long as you meet the criteria.
To enter into a Trust you will need a private income and cannot be paid for with Government money ie benefits. If you do not have a private income you would need a third party who would be willing to say they’re helping with the payments.
When entering a Trust Deed you cannot be preferential with any creditors as all debts need to be included.