As a formal and legal debt solution, the criteria for being able to enter into a Trust Deed is fairly strict.

You must:

• Live in Scotland, either now, or in the last 12 months. You could also have a place of business in Scotland
• Have unsecured debts more than £5,000 in total
• Be able to pay a monthly contribution due to having a sufficient expendable income. A general rule for this is that your Trust Deed will allow for at least 10% of your debt to be repaid. However, this does not guarantee that your Trust Deed will be accepted and become ‘protected’
• Be insolvent. In other words, is unable to pay back their debts as your liabilities are greater than your assets

If you don’t meet this criteria, however, don’t worry. There are plenty of debt solutions available. For example, if you are not eligible for a Trust Deed because you are not resident in Scotland, an Individual Voluntary Arrangement could be suitable for your circumstances; or if you are not eligible for a Trust Deed because you have less than £5,000 in total debts, you could benefit from a Debt Arrangement Scheme. There are many options for a variety of situations, so don’t hesitate to contact us to find out more.