Do I have to pay for the Trust Deed

A Trust Deed or Protected Trust Deed (PTD) is the Scottish equivalent of an IVA or Individual Voluntary Arrangement. This is a financial procedure by which people who have serious debt problems can gain financial freedom from the stress and strain involved in trying to meet impossible monthly repayments. Setting up a Trust Deed is a simple but involved process. It is often a more liberating and less restrictive alternative to bankruptcy.

In simple terms, no the debtor does not have to pay for the Trust Deed. However, a payment is taken but it is retrieved from the money that has been paid into the Trust Deed by the debtor over the period of the Trust Deed. The fees and financial costs are taken from the 'pot' of collected money or from the sale of your assets. For this reason, one might say that there is nothing to pay, but some agreed (by the creditors and your trustee) amount would be taken from what you pay your creditors. Of course, it should go without saying that this means that your repayment amount will take this into account, the creditors aren't going to be short changed just because the Trustee demands their pound of flesh.

If the sale of your 'estate' (as it is known) or assets does not produce significant enough remittance for the creditors, then monthly repayments will be required from the debtors earnings. Either way, the administration and running costs of the Trust Deed will be covered and you will not receive a bill before or after the Trust Deed is set up.

No single Trust Deed will have precisely the same costs. It is essential that you speak with your debt advisor or Trustee about the costs, and don't forget that you can shop around to get the best deal from a number of different advisors/Trustees. Some of the costs will be straightforward but those imposed directly by someone acting on your behalf may differ greatly.