The main advantage of entering into a trust deed is that all correspondence is directed to the trustee,[citation needed] who handles all of the communication with the creditors.
The main disadvantage of a trust deed is that existing enforcement action, such as earning and bank arrestments may continue to be effective and homeowners will be required to deal with equity in their home, should they have any.
[citation needed] A common misconception is that credit can continue to be used while in a trust deed, however, this could result in criminal charges.
Some people are unable to sign a trust deed because of their contract of employment states they cannot enter an insolvency solution.
All protected trust deeds that fall under the Court of Session and within the territorial jurisdiction of Scotland are advertised as a public record in the AiB Register.
The qualified practitioner will evaluate your income to debt ratio,[citation needed] such as mortgage, council tax, utility bills, and all other outgoings.
When one agrees to enter into a trust deed, you take on the responsibilities and obligations of a regular legally binding contract to repay your debt.