Trust Deed Step-by-Step Process

We understand that any debt solution can seem complicated at a first glance, so we have tried to break it down for you below. If you would like more information, please call our free phone number on 0808 131 9100.

 
Step-by-Step Guide to a Trust Deed:

A: Compile a full list of creditors with all the money owed, and how much you will be able to afford each month.

B: Consult an Insolvency Practitioner (also known as an IP or a Trustee) who will be able to go through your finances and write to your creditors offering a proposal.

C: If over two thirds of your creditors, by value, agree to the proposal then it is accepted. From this point any legal action will be stopped.

D: You can relax as all creditor correspondence can be sent to your Trustee. All you need to do is pay your monthly Trust Deed payment and any secured debts, such as your mortgage.

E: Once your 36 months is up, you can 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.)