Quick Debt Question

sweetlittlethoughts

Hi all - just a quick question...

What are the differences between trust deeds and the debt arrangemet scheme?

Do they both ensure that your mortgage and car will be safe?

Thanks in advance

lvm

Hey,

A protected trust deed I think is just the Scottish equivelent of an IVA. So if 2/3 of creditors (by debt value) agree to repayment plan over certain period of time (usually 3 yrs) any debt after that would be written off. It's a public record and will affect any application for credit for between 3-6 years. If enough of them refuse the plan, they can still pursue debts through DCA or court.

A DAS appears to be almost exactly the same however it doesn't appear to be for a fixed time period and I don't think they write off any debt. They will however freeze interest/charges.

Both are a big step to take so if you wanted to give a little more information (debt values, APRs and what you can pay) you might get a little more help and some more options on this site. Debt Management Plans are very popular although don't benefit from having debt written off but it is handled through 1 monthly payment.

If you need any further info just shout!

Miss_Poohs

Very briefly I believe a Trust Deed is a form of insolvency - and has serious implications if breeched.

Where as a Debt Arrangement Scheme, is a form of mutual agreement between creditors and the debtor to fully repay all the debts that are outstanding.

Look here for more info on DAS http://www.moneyscotland.gov.uk/das/MoneyScotland/Homepage

and here for more info on Trust Deeds
http://www.aib.gov.uk/Services/ptd