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Protected Trust Deed

In Scotland? Pay what you can afford for about four years, then what’s left of the debts in it is written off.

See if I qualifyHow it works

A Trust Deed isn’t right for everyone, and fees apply. It will affect your credit rating. Only available in Scotland. Free, impartial debt advice is available from MoneyHelper.

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Roughly how much do you owe?

A Trust Deed at a glance

How long most Trust Deeds last.
4 years
The least you must owe for it to be protected.
£5,000
For creditors to object before it becomes protected.
5 weeks
On your credit file, from the date it starts.
6 years

Figures from the Accountant in Bankruptcy (AiB).

Why people choose a Trust Deed

  • One affordable payment

    Your debts become one monthly payment, set by what you can afford after essential bills.

  • Legal protection

    Once it’s protected, the creditors in it are bound by it and can’t take action over those debts.

  • Interest and charges frozen

    No new interest, fees or charges can be added to the debts it includes.

  • A clear end date

    Most run for four years, and you know the end date from the start.

  • Your trustee deals with creditors

    A licensed insolvency practitioner, your trustee, handles your creditors for you.

  • Written off at the end

    What’s left of the debts it includes is written off when it ends.

How a Trust Deed works

  1. Tell us about your debts

    Answer a few questions. One of our advisers calls you, goes through your income and outgoings, and explains every option, not just this one.

  2. A trustee sets it up

    A licensed insolvency practitioner, your trustee, draws up the Trust Deed and sends it to your creditors.

  3. It becomes protected

    If not enough creditors object within five weeks, it becomes protected, and binds all the creditors in it.

  4. The rest is written off

    After the agreed term, usually four years, what’s left of the included debts is written off.

Weigh it up

A Trust Deed is a big commitment. Here is what helps, and the catch, side by side.

What helps

  • One affordable payment a month
  • Interest and charges frozen
  • Creditors in it can’t take action
  • A clear end date, usually four years
  • What’s left at the end is written off

What to weigh up

  • It stays on your credit file for six years
  • Your name is on the public Register of Insolvencies
  • Fees are taken from your payments
  • Homeowners may need to release equity
  • If it fails, you could be made bankrupt

Is a Trust Deed right for you?

You’re likely a fit if…

  • You live in Scotland
  • You owe £5,000 or more in unsecured debt
  • You owe money to two or more creditors
  • You have a regular income
  • You’re struggling to keep up with payments

It may not be right if…

  • You don’t live in Scotland
  • You owe less than £5,000
  • You only have one creditor
  • You don’t have a regular income
  • You’re already in another insolvency procedure

Other ways out of debt in Scotland

A Trust Deed isn’t the only route in Scotland. We’ll tell you which could work for you.

  • InformalCan be used in England, Scotland, Wales

    Debt Management Plan

    One affordable monthly payment, shared between your creditors.

Scotland also has the Debt Arrangement Scheme, and sequestration (Scottish bankruptcy).

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Questions about Trust Deeds

  • How is a Trust Deed different from an IVA?

    It’s Scotland’s equivalent, under Scottish law. It usually lasts four years rather than five, and creditors have five weeks to object rather than voting on a proposal.

  • How long does a Trust Deed last?

    Most last four years. You make one payment a month to your trustee, who shares it between your creditors; at the end, what’s left of the included debts is written off.

  • What happens to my home?

    You won’t be forced to sell it, but homeowners may be asked to release equity during the term. If you can’t, the term can be extended instead.

  • Can my Trust Deed be rejected?

    Yes. It won’t become protected if, within five weeks, a majority of your creditors by number, or those owed a third or more of the debt, object. Creditors who don’t reply count as agreeing.

  • What debts can’t be included?

    Secured debts like your mortgage, student loans, court fines and child maintenance. Most unsecured debts, like cards, loans, overdrafts and catalogue debt, can be included.

  • Is there free help?

    Yes. MoneyHelper offers free, impartial debt advice, and you don’t have to use a company like ours to get help with your debts.

You don’t have to sort this out alone

Tell us roughly what you owe and we’ll show you what could help. It takes two minutes, won’t affect your credit score, and there’s no obligation.

Roughly how much do you owe?