1 – Help dealing with your creditors.
Your trustee deals with creditors for you, reducing your stress and saving you time.
2 – Legal protection from your creditors.
With a protected trust deed in place, included creditors cannot take legal action against you.
3 – Make a single monthly payment.
You make one monthly payment to the trustee and they handle payment to your creditors. Your money is safe; it’s kept in a ring-fenced and insured client account.
4 – Debt write-off.
When you complete your Scottish trust deed, any included debt that remains unpaid cannot be recovered from you.
5 – Frozen interest and charges.
Your debt level doesn’t increase during your trust deed. Interest is only applied if you later become able to afford it; perhaps because you receive an inheritance for example.
6 – Protection of your home.
Equity in your home is treated more flexibly than it would be under bankruptcy.
7 – Keeping your car.
You’ll be able to keep a car (of moderate value) that you reasonably need.
8 – Allowances for your bills and expenses.
You’re given allowances to cover your essential household bills and other expenses.
9 – Flexibility.
If your personal situation changes, trust deed payments can be amended. Short-term payment holidays are possible if you suffer a financial emergency.
10 – Pension funds are protected.
Your money saved in an approved pension scheme is generally safe. Your trustee cannot force you to withdraw your pension funds (though the money would be at risk if you chose to withdraw it before getting discharged).