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Scottish Trust Deed Forum
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Topic starter
01/12/2012 5:35 pm
I am looking to extend my trust deed to enable me to repay debts in full plus trustee fees plus 8% interest. I am just waiting for agreement from my trustee to this and have one question.
The figures that I am required to pay includes 8% interest. However much this amounts to, who does this money go to? Does it go to the trustee? or is it divided up among the creditors?
Thanks
01/12/2012 6:29 pm
Hi gresgow.
The trustee just gets their fees.
Any extra collected for interest should go to your creditors.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
01/12/2012 6:35 pm
Thanks TDA
I thought that was the case - is 8% the industry standard? - how did that figure come about?
01/12/2012 8:08 pm
I think it's "statutory interest" and applies to a few different things.
From recollection of other threads I think the trustee can choose to apply this or the original contractual interest rate.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
03/12/2012 10:11 am
It is a judicial rate of interest, often applied by the court once a decree has been granted, and it applies to insolvency procedures too.
The trustee should either apply this rate to your debts or the contractual interest rate - whichever is higher - though in many cases creditors are happy to just accept the 8%
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