Trust Deed Disadvantages
Like any debt solution, a Trust Deed comes with a number of advantages and disadvantages that must be considered before a decision is reached.
All Clear Finance can offer expert advice on 0808 131 0038 to help you decide if a Trust Deed is right for you.
Disadvantages of a Trust Deed:
- A Trust Deed will damage your credit rating.
- Failure to make repayments means that your assets are at risk and bankruptcy proceedings may start against you.
- You cannot be a director of a limited company.
- Any existing arrestments or diligences will still be effective, so it is important to fully disclose all financial information.
If you still feel unsure about how to tackle your debt problems, please try our 1 Minute Debt Wizard which will show you some of your options.
Entering into an IVA may adversely affect your
credit rating for up to six years from the date of approval.
Your property will be protected within an
IVA but you may be required to release all or part of any equity during the
period of the arrangement.
Failure to complete the term of an IVA can
result in bankruptcy.
(In Scotland, a PTD is the equivalent to an IVA.)