What is a Trust Deed? (scotland only) Client must have minimum of 2 credit agreements with debt of £10,000 plus Client must have disposable income of £150 A legal agreement under The Bankruptcy (Scotland) Act 1985 Handled by a selected panel of licensed Insolvency Practitioners An agreement with the creditors to accept the proposal The proposal is for the lenders to accept a lower amount than the amount outstanding based on what the client can afford usually over 36 months. Secured debts and debts that fall outside the trust deed would not be repaid payment calculated on disposable income before unsecured debt payments potential to reduce payments to a more affordable amount lump sum payments can be made interest on all accounts will be frozen all outstanding credit will be fully paid off after 36 months lenders cannot take legal action The Insolvency Practitioner will manage payments on behalf of the client there is no upfront fee payable by the client there maybe a requirement to release equity from property Fees payable there is no upfront fee payable apart from any advice fee the adviser may charge (maximum £285) the Insolvency Practitioner will charge a fee which is taken into consideration when the creditors agree to accept the Trust Deed application. The trust deed monthly payments agreed will be inclusive of the fee. A typical fee would be 15% of the trust deed amount agreed Failure to maintain payments on a trust deed agreement may result in sequestration