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Trust Deeds

A Scottish Trust Deed can clear your unsecured debts

Introducing Trust Deeds

A Protected Trust Deed is a legal process accessible only to residents in Scotland and it offers debtors an alternative to bankruptcy. A Trust Deed enables those who are unable to repay their debts a way of establishing a monthly repayment schedule based on what the debtor can afford to pay. The Trust Deed will last for a specified period which is usually four years. When this specified term of the arrangement comes to an end, any remaining unsecured debts are usually written off.

Your protected Trust Deed is supervised by a licensed insolvency practitioner. The practitioner is responsible for all negotiations with your creditors and also for ensuring that you keep to the terms of the Trust Deed. A Trust Deed becomes a Protected Trust Deed once your creditors have agreed to the proposal. At least half of your creditors need to accept the proposal for it to go ahead, or creditors representing at least two thirds of your total debt. If a creditor doesn’t respond, it’s assumed that they’ve accepted the offer.

Once the Trust Deed is protected, your creditors they can no longer take action to collect the debt including chasing you for payments or starting court action.
Instead of making payments directly to your creditors you’ll make a payment to your trustee managing the protected Trust Deed and they’ll distribute this to your creditors on your behalf.

Do you qualify for a Scottish Trust Deed?

See if you Qualify

Write off all the Unsecured Debts you can’t afford

Debt free typically in 48 months

Your interest frozen

Debts included in your Trust Deed will be cleared in a set time frame which is usually 48 months. Debts not included in a Trust Deed will still have to be maintained.

In most cases, a Trust Deed will last for 48 months provided your Trust Deed has not been extended.

Once agreed with your creditors, all interest and charges will be frozen.


Here are some of the key advantages to using a Scottish Trust Deed.

Your Creditors at bay


We deal with your creditors directly so you no longer have to liaise with them.

One Monthly Payment


Drastically cut your monthly outgoings by making just one payment per month from your disposable (surplus) income.

Stop the Action


With a Protected Trust Deed, your creditors cannot take further action against you, arrest your earnings or continue to charge interest.

Debts Written Off


As well as driving down the time that you remain in debt, a Protected Trust Deed can also dramatically reduce what you have to pay back. In fact, up to 90% of your debts can be written off – which makes a huge difference to anyone.


Unsecured only


Only unsecured debts can be included in a Trust Deed. Secured debts cannot be included a Trust Deed and you will have to continue paying your current secured creditor(s) or arrange a new payment arrangement with them yourself.

Careful consideration


The arrangement is binding on you and your creditors. If you were to default on the arrangement then your trustee (the Licensed Insolvency Practitioner) can petition for your sequestration or bankruptcy. Also, if you fail to adhere to the terms of the Trust Deed, your home and other assets may be at risk. Our staff will fully explain the implications of the Trust Deed to you to ensure that the proposal is affordable, achievable and suitable to your personal circumstances.

Not a done deal


Your creditors are not obliged to accept a proposal for a Trust Deed. Your trustee will negotiate on your behalf to agree an arrangement with all your unsecured creditors. If creditors that you owe more than one third of your total debt object to the proposal then your Trust Deed will not become protected.

Full disclosure


Any existing wage arrestment orders or other diligence may continue to be effective. It is therefore important to fully disclose any actions that may already have been taken against you in order that the appropriate arrangements can be made for these to be released, if possible. At worst, the effects of these procedures need to be taken into account when framing the proposal for the Trust Deed.

Further Limitations

Despite having a number of benefits, a Trust Deed does have some disadvantages, which should be considered.

  • Your credit rating will be affected

  • If you fail to maintain the payments on your Trust Deed then you could find yourself in a worse financial situation than when you started which may possibly lead to bankruptcy.

  • We recognise the worry you may have about your home, and this will underpin the basis of whether a Trust Deed is the correct option for you. The Trustee only has an interest in any equity in your home, and provided the circumstances are appropriate, this equity can be properly managed (for example by an extension to the Trust Deed duration, or by the exclusion of the home from the Trust Deed). Our experts can talk you through the options available.