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Trust Deeds (Scotland)
Sequestration is not the only solution fo
r people with serious debt problems who are resident in Scotland.
Granting a trust deed, by which a person voluntarily transfers some or all of his or her assets to a trustee to administer on behalf of the creditors, is both less formal than sequestration and may also avoid some of the legal disabilities which follow from being made legally bankrupt.
Provided it meets certain conditions, a trust deed may be recorded in the Register of Insolvencies as a 'protected trust deed'. This prevents a creditor from petitioning for the debtor's sequestration so long as the person granting the trust deed abides by its terms.
Whilst signing a trust deed is less formal than sequestration, it is nevertheless a very serious step to take.
Granting a trust deed is a voluntary act but once a person has signed a trust deed he and the trustee are legally bound by it.
Think very carefully before signing a trust deed and seek advice from a solicitor or from one of the organisations listed at the back of this document.
This website contains the answers to the questions most commonly asked by people about trust deeds.
The following frequently asked questions are extracts from an Information Booklet entitled “Trust Deed Guide” (April 2008) prepared by the Office of the Accountant in Bankruptcy. It is aimed at people who might be thinking about signing a trust deed but it will also be helpful for people who are owed money by someone who has signed a trust deed. It is not intended to be a complete guide to the law. It is for general guidance only and reflects the rules in force from 1 April 2008. It is not a detailed statement of law nor is it intended to be comprehensive.
If you are not sure about the extent of your problem then try filling in our online Debt Calculator. This will help you calculate how much money you have left over each month to pay your debts (creditors)
Getting in touch with an insolvency expert for free advice is as easy as picking up the phone. Call us on free phone 0800 156 1536. If you would like one our experts to contact you to discuss your financial position and how we can help, please send us your details so we can arrange a call back at a time that is convenient to you.