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Trust Deed – Scotland

Check if you qualify

At a glance.

A protected trust deed is a legally binding debt relief solution available to people living in Scotland with £5,000 or more of unsecured debt.

Lets you write off up to 90% of your debts.

Helps you avoid the risk of bankruptcy.

Stops all hassle from creditors.

Allows you to make one affordable monthly payment.

What is a Trust Deed?

A protected trust deed is a formal debt solution. It’s only available in Scotland, and in order to be eligible, you need to have at least £5,000 or more of unsecured debt. Usually, a trust deed will last for four years, during which time you make one, set monthly payment towards your debt. Trust deeds are set up by licensed insolvency practitioners, who take on the role of trustee and manage the agreement with your creditors on your behalf.

Freeze interest

Interest and fees on your debt are frozen

One payment

You make one monthly payment based on what you can afford to pay.

Write off debt

At the end of the agreement, any leftover debt is written off.

Stop contact

Once a Protected Trust Deed is active, creditors will stop contacting you for payment.

Prevent legal action

and won’t be able to take legal action over your debt, so long as you keep up with your payments.

Keep your assets

Keep control over your assets, including vehicles and property

On the record

It will appear on your credit file for 6 years and will appear on the Accountant in Bankruptcy (AiB) Register for as long as you’re in the arrangement.

Other options

Residents in England and Wales might consider an Individual Voluntary Arrangement (IVA) or a Debt Management Plan (DMP).

Where to apply

We offer Protected Trust Deeds through our partner site, Carrington Dean.

What debts can be included in a Trust Deed?

Most unsecured debts, meaning debts that are not tied to an asset such as your home, can be included in a trust deed.

Credit Cards
Personal Loans
Council Tax Arrears
Payday Loans
Joint Debts*
Outstanding Bills
Income Tax Arrears
Debts to family or friends
Catalogues and Store Card Debts
Energy and Water Bill Arrears
Tax Credit/Benefit Overpayments

* Joint debts - but the other person must also continue their payments.

Check if you qualify

Trust Deed Advantages

Fixed term

Usually, a trust deed lasts for four years, so there’s a fixed end point in sight when you agree to one.


A trust deed takes into consideration how much you can afford to pay towards your debts each month, so that you won’t struggle financially.

Peace from creditors

When your trust deed is confirmed as protected, your creditors will no longer be allowed to contact you.

Managed for you

The insolvency practitioner handles all the administration of the trust deed on your behalf.

Interest and charges stop

As soon as you have a protected trust deed in place, your debt will be frozen and all interest and charges will stop.

Keep your assets

Unlike with sequestration or bankruptcy, you won’t be asked to sell your home or car if you’re in a protected trust deed.

No upfront fees

While there are fees involved in a trust deed, these are deducted from your monthly payment or, if appropriate, the sale of an asset.

Ends arrestments

If you have a current earnings arrestment, this will be removed when the trust deed becomes protected.

Gives you a fresh start

At the end of your payment term, any remaining debts will be written off, leaving you free to get on with life.

Trust Deed Disadvantages

Equity is released

Although you won’t have to sell your home, you may have to remortgage it to release any equity in the property towards your trust deed.

Subject to approval

Your creditors have to agree to the trust deed in order for it to become protected.

Impacts credit rating

When you enter into a trust deed, this will be reflected in your credit file and may make it harder to get credit in the future.

On the record

Your trust deed will be placed on a public register, which is usually only accessed by financial professionals.

Company directors

You won’t be able to act as the director of a company while you’re in a trust deed.

Career options

Having a trust deed may affect your ability to apply for certain jobs in the police, prison and financial services.

Is a Trust Deed a good idea?

When all your payments have been made, and there is nothing left outstanding, you will be discharged from your Trust Deed. Your lenders will be sent paperwork to confirm this and it is then their responsibility to update their records and close down your accounts.

You will also receive a copy of this paperwork along with a discharge certificate. Your arrangement will then be noted as being complete on the AiB register and will be removed shortly after.

As far as your credit file goes, your lenders will have to report the changes to the credit reference agencies so that this can be updated, and all your debts are changed to satisfied.

Once this has been done, you are free to start again and begin to rebuild your credit score. This will take time so it’s important to be patient, and don’t worry if it doesn’t go up as quickly as you’d like.

They did it, and so can you.

Anyone can get into debt. But sometimes, it takes a bit of help to get out of it. That’s what we’re here for. And here are some of the people we’ve helped.

“It was literally the best decision of my life, and it has actually changed my life, cheesy as that sounds, it has changed my life.”

Everything you need to know about a Trust Deed.

Still have questions? No problem. We’ve included some of the most common queries our debt specialists are asked to help you find the answers you’re looking for.

To apply for a trust deed, you’ll need to contact an insolvency practitioner (IP) that specialises in trust deeds, like our partners, Carrington Dean.

They’ll assess your income, expenditure and any assets like your house and car, and help you work out how much you could pay every month towards your trust deed.

Once you have the initial discussion with your insolvency practitioner about setting up your trust deed, they’ll draft an arrangement and send this to your creditors for approval.

The cost of using a trustee will be calculated into the monthly fee for your arrangement. This means the monthly figure that’s proposed for your trust deed will be the full amount you have to pay off your unsecured debts, including costs.

We never charge you for setting up a debt arrangement and would advise you to be wary of any company that does. When your arrangement is being set up, the trustee’s fee will be decided at the outset, with the agreement of the creditors.

If you do speak to us about setting up a trust deed but decide it’s not the right solution for you, we won’t charge you for our advice. It’s completely free and offered with no obligation.

You might find yourself with a lump sum of cash, for example if you’ve come into an inheritance or have been awarded a large redundancy settlement. This is something you can offer towards your trust deed. However, you will be asked to verify the source of the money.

If you find yourself in a position where you have the money to pay off your trust deed early, you should speak to your insolvency practitioner and let them know. It may be possible to settle your arrangement early if you can afford all the payments due, as well as any fees associated with setting up your trust deed.

Yes. It’s important to know that if you decide to go ahead with a protected trust deed, it will be reflected in your credit file for six years. You’ll also be entered onto the insolvency register when your trust deed is set up, after which time, you’ll be able to rebuild your credit rating.

This can be a barrier for many people who are weighing up a trust deed as an option for dealing with their debt. However, it’s worth remembering that your credit rating may already be in poor shape because of your debts, and a trust deed is a way of dealing with those debts so you can be free to recover financially.