The Advantages of signing a Trust Deed:

• Pressure from creditors is removed
• All correspondence and queries will be dealt with by the Trustee
• You can agree the proposal which will be put to creditors with your Trustee, therefore retaining a degree of control over your finances
• A Trust Deed is less costly than sequestration, and should result in a better outcome for your creditors

The Disadvantages of signing a Trust Deed:

• Existing arrestments continue to be effective. Although Councils who carry out earnings arrestments are generally willing to consider lifting arrestments upon Trust Deeds gaining protection
• You cannot be a company director of a limited company unless the company’s Articles of Association state otherwise
• The arrangement is binding on you as well as your creditors. If you were to default on the arrangement then the Insolvency Practitioner can petition for your Sequestration
• Entering into any arrangement with your creditors may affect your credit rating
• Creditors are not obliged to accept a proposal for a Trust Deed. However, the Trustee will negotiate with all of your creditors

For more information about Trust Deeds please visit our FAQ section