What are the consequences of signing a trust deed?
Signing a trust deed is a serious step - you must be sure that you understand what you are signing.
Before you sign, your trustee must give you advice about the consequences and must tell you about the alternatives to a trust deed. The alternatives may include a debt management plan and a Debt Payment Plan under the Debt Arrangement Scheme. The trustee must also give you a copy of the Scottish Government's Debt Advice and Information Package.
Like bankruptcy, a protected trust deed may affect your credit rating and may prevent you from doing some jobs. If you do not succeed in getting your trust deed protected your creditors may be able to make you bankrupt.
You should be aware that the trustee will charge for the work they do and that you can choose who your trustee will be. Your trustee must give you an indication of what they will charge before you sign.
You can get free advice on trust deeds and your otheralternatives from Citizens Advice Bureaux or Local Authority money advisers.