Advantages of a Trust Deed

• All interest and charges on the debts are frozen on the date the Trust Deed is signed
• Your Trustee will deal with all creditor correspondence and queries
• Your creditors are unable to take any further enforcement action against you
• After paying the Trust Deed for the agreed term (usually 48 months), any remaining debt is written off.

Disadvantages of a Trust Deed

• Trust Deeds affect your credit rating for six years, starting from the date the arrangement is agreed.
• You will not be able to take out further credit during your Trust Deed.
• Homeowners may be required to release equity for the benefit of your creditors
• If you fail to keep up your payments you may be at risk of Sequestration proceedings against you.
• If you’re a homeowner you may have to sell or re-mortgage, although you may be able to agree to make additional payments into your Trusts Deed in lieu of the equity.
• You may be expected to sell high-value items but certain items may be allowed e.g. a reasonably priced car if required for work and family purposes.
• Your details will be held publicly on the Register of Insolvencies.