Trust Deed

What Is A Trust Deed?

A Protected Trust Deed is a voluntary agreement between you and your creditors that is available to residents of Scotland.

It allows you to agree an affordable monthly payment to repay all or part of the money you owe usually over a period of 48 months.

It is a legally binding agreement arranged and managed by an Insolvency Practitioner who acts as the Trustee.

Trust Deed Benefits

Once your arrangement has been established and is protected , unsecured creditors cannot add contractual interest or charges to any outstanding debt.

This means that come the end of the 4 year arrangement if you have made your all payments then any remaining debt on your account is written off allowing you to start fresh.

An advantage of a trust deed is that whilst in the arrangement your assets are protected from seizure as payment for outstanding debts. What this means is that whilst paying into your arrangement your home, car and other assets are safe from seizure unlike in cases of bankruptcy.

Another benefit is that by working with your advisor they will take into account your income and expenditure to find a figure that you can affordably pay each month.

Comparing Debt Arrangement Schemes and Trust Deeds

Are Your Eligible?

In order to qualify for a Protected Trust Deed in Scotland you must meet the following criteria:

  • You have been a Scottish resident for at least 6 months
  • You have unsecured debts of over £5,000
  • You are able to make monthly contributions to your creditors

As soon as a trust deed becomes protected, your unsecured creditors will no longer be able to use legal recovery procedures to collect these debts from you.

Contact us today to find out if you qualify

Trust Deed Help & Advice

If you think this could be the right solution for you, contact Creditfix to speak with one of our advisers and see what’s best for you and your situation.

A Trust Deed is only available to residents living in Scotland. If you’re currently living England, Wales and Northern Ireland you may be eligible for a IVA

Call us now for immediate and confidential free debt advice on 0808 208 5198 or complete our form. We can start to work through our debt problems as soon as you contact us.

Do you have over £5,000 of debt? Call today and find out how we can help.


  • All interest and charges are frozen at the point the Trust Deed is signed.
  • Once protected, creditors are unable to take further action.
  • At the end of your agreement, any debts not repaid will be written off.


  • The rights to your assets are transferred to the Trustee, including your property.
  • You may be required to release equity from your property.
  • Creditors can submit objections to the Trust Deed becoming Protected.

Scottish Trust Deeds are only available to residents of Scotland. If you live in England, Wales or Northern Ireland you may be eligible for an IVA.

Frequently Asked Questions

A six-week period in which creditors are unable to take further action. The application is submitted to the Accountant in Bankruptcy to allow you time to decide whether to enter a debt solution.

The property will be valued by an independent valuer and details of the redemption figure due to your secured lender(s) will be obtained to confirm your share of the equity, if any, in the property. Equity in your property is considered an asset and we will reach an agreement with you prior to you signing the Trust Deed, which may involve you having to remortgage or extend the period of your Trust Deed period, normally 12 months depending on the level of equity. Equity – Is the property value minus the sum owed on the mortgage and secured loans.

The Trustee’s fees are approved by creditors and paid from the funds collected by this office for the benefit of your creditors. The funds collected by this office come from the monthly contribution payments made by you or from asset realisations. If you are in a position to repay your debts in full plus statutory interest, the amount you would pay will include all of the Trustee’s fees.

Most unsecured debts can be included, although there a small number of exceptions these include, Student Loans; debts obtained fraudulently and Court fines.

There is flexibility. If your circumstances change, please contact us to discuss the options. In the short term, it may be possible to suspend your monthly payments and extend the period of your Trust Deed.

Once signed, a Trust Deed is registered on the Register of Insolvencies. From the date of registration unsecured creditors have 5 weeks to lodge any objections to the proposal submitted to them. All objections must be submitted to the Trustee in writing prior to the end of the five-week period. The Trust Deed will become Protected unless objections are received from either a single majority of creditors in number or more than one third in value. Once Protected, all of the unsecured creditors whose debts were due prior to the date of the Trust Deed are bound by the arrangement. No further action can be taken against you for these debts unless they fall under one of the small number of exceptions detailed above. If sufficient objections are received, your Trust Deed will fail to become Protected. You are under no obligation, but you may wish to consider alternative solutions, Such as the Debt Arrangement Scheme or Sequestration. The Register of Insolvencies is a public register which can be accessed by anyone. It is commonly used by organisations, such as a bank, to monitor the position of their clients.

If you are struggling to repay your debts and have missed payments, it is likely this will already reflect in your credit rating. The Trust Deed itself is not on your credit file. However, once payments are stopped to creditors they can register a Default Notice which will remain on your file for up to 6 years. Once discharged, these notices should be marked as partially satisfied or satisfied. Default Notice is a letter from a creditor advising that payments have been missed on the account, normally 3 – 6 months. It can be identified by the following statement at the top ‘Default notice served under section 87(1) Consumer Credit Act 1974’. It will allow a period of 14 days to bring your account up to date or the default will have registered.

If your car is valued at less than £3,000 it will be unaffected by the Trust Deed. If the car is valued at more than £3,000 it will be considered an asset. An agreement will be reached prior to signing the Trust Deed and if necessary you may be asked to extend the period of your Trust Deed to pay the value of the vehicle.

It is normal practice for you to be advised to change your bank account prior to signing the Trust Deed if you have debts with your current account provider, however if you find yourself in a position whereby you bank account is frozen then this office will arrange to contact the bank direct to unfreeze the account on your behalf.

Your income and expenditure will be reviewed annually by this office, however if your circumstances change throughout the period of your arrangement then an additional review will be required. If your surplus income increases, then you will require to increase your monthly contribution payment accordingly.

Once you have paid all of your agreed contributions payments and fulfilled your obligations under the arrangement then you will receive your notice of discharge. The Trustee will make payment to the creditors and any remaining balance will be written off. Please note that it can take between 3 to 6 months to conclude your arrangement formally.

Any assets that you acquire during the Trust Deed period will be ingathered to the Trust Deed estate for the benefit of creditors.