Trust Deed Process

One Advice understand that any debt solution often seems complicated at first glance, so we have tried to break it down for you below. If there is anything that you are unsure about or would like more information about the Trust Deed process, please give our free phone number a call on 0800 019 5870.

Trust Deed Process:

1: Compile a full list of creditors with all the money owed, and how much you can realistically afford to pay back month.

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

3: If over two thirds of your creditors, by value, agree to the proposal then it will be accepted. If it is registered as 'Protected' then your creditors cannot take any further legal action against you and all charges will be frozen on your account.

4: You can relax as any creditor correspondence can be sent to your IP who will deal with this for you. All you need to do is pay your monthly Trust Deed payment, mortgage and any secured debts. During your Trust Deed you will not be allowed to take out any further credit and you must advise your Trustee in changes to your finances.

5: Your 36 months is up, 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.)