What is a Scottish Trust Deed?

A Protected Trust Deed in Scotland is a formal, legally binding arrangement between an individual and their creditors which lasts for a period of 4 years (although a longer period can be considered depending on circumstances). It is a legal agreement which can only be carried out through a licensed Insolvency Practitioner (IP) who will act as the Trustee. It is similar to an IVA (which is only available for residents in England, Wales and Northern Ireland), a Protected Trust Deed is only available to residents of Scotland, it is a Government Backed Legislation and is designed to help people who are unable to pay back their debts, a minimum of £5,000 in unsecured debt is required to be eligible for a Protected Trust Deed.

At the end of the period any remaining debt is legally written off by creditors, subject to some exceptions, this is known as debt forgiveness. If you do not have £5,000 in debt there are other solutions, such as a DAS (Debt Arrangement Scheme) which freezes interest on your debts and protects your home and car. If you are based in England or Wales an IVA may be suitable alternative. The last resort would be Sequestration (for residents in Scotland) or more commonly known as Bankruptcy.

A Scottish Trust Deed reduces unaffordable multiple payments to creditors to a single affordable monthly payment to the Trustee. It offers protection from creditors taking legal action against you, and protects your home and car from repossession.

If you would like free, confidential and impartial advice about entering a Trust Deed or any other debt management solution without any obligation please contact us today.

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Should you need to contact us, here are our details.

My Trust Deed
368 Alexandra Parade, Glasgow
G31 3AU

0141 406 3150

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What is a Scottish Trust Deed?

A Protected Trust Deed in Scotland is a formal arrangement between you and your creditors of what you can afford to pay back (monthly) to your debts over a period of 4 years (depending on your circumstances this may be longer). Once Protected, it is illegal for creditors to pursue you for money owed to them, it can also lift wage arrestments put in place, making this a very powerful legal tool to help you get back on your feet. Not only this, after the 4 years (or more is up) all your debt is wiped clean and you can have a fresh start – including rebuilding a credit rating (if you have a poor credit rating). We at Trust-Deed.org do all the work for you so you can sit back and relax. For advice, call our office on 0141 406 3150, email us at info@mytrustdeed.co.uk or use the form to the right.

We know debt is a horrible position to be put in, but remember – you’re not alone, and for some people it’s hard to talk about. Here at Trust-Deed.org, we always put your needs first, it’s our duty of care. Although we specialise in Trust Deeds, not everyone meets the criteria, and in that instance we will review your circumstances and advise you on the best possible option be it a Debt Arrangement Scheme or Sequestration. Simply fill out the form to the right, and we’ll review your information and get in touch with you, this service is completely free with no nasty secret charges. For free advice, call our office on 0141 406 3150, email us at info@mytrustdeed.co.uk or use the form to the right.

How does a Scottish Trust Deed work?


Consult an Insolvency Practitioner who will act as your Trustee if you decide to proceed. He will sit down with you and discuss your personal financial circumstances. This enables him to help you to draw up a realistic budget and to determine the level of affordable monthly payment you can make towards your debt.

This single monthly payment will replace all your other monthly repayments to existing creditors. This forms the basis of the Trust Deed which will be submitted for approval to creditors. It is an important step towards securing you protection from creditor action, from other forms of legal action or from your wages being arrested.

If you are unable to afford the minimum monthly payment for a Trust Deed, Bankruptcy (called Sequestration in Scotland) is often a good alternative. To find out if a Trust Deed might be an affordable solution for you try our Debt Calculator. It will return minimum monthly payments for different solutions based on your debt level. We request your contact details as these results are only indicative, and a full income and expenditure is necessary to provide best advice.


Once a Trust Deed is signed, your Trustee will send a proposal to your creditors, clearly detailing how much you propose to pay, how your assets, if any, will be dealt with and how much creditors can expect to receive over the lifetime of the Trust Deed.

Creditors have five weeks from the publication of a Notice in the Register of Insolvencies to either accept or object to the proposal. If no objections or objections which are not a majority in number or are less than one third in value of the debt are received, the Trust Deed achieves protected status. If sufficient objections are received then the Trust Deed will fail. If this were to happen your Trustee would resign and you would be given further advice.

If your creditors do not respond it is considered that they have agreed to the proposal.


Once your Trust Deed is protected your creditors are unable to take action against you to recover your debts.

If you are a homeowner, the level of equity, which is the difference between the value of your home and the amount you owe to the secured lender, is determined at the start of the Trust Deed. If you have a lot of equity in your home, it must be released to your Trustee to pay to your creditors. Your advisor will discuss with you the different ways to release your equity before you sign your Trust Deed. Every situation is different but it is highly unlikely that you will be forced by your Trustee to sell your property.


Once all payments have been made, normally over a period of 4 years, and all terms have been met, you will be issued with a discharge letter confirming this position. Your creditors who were included in the Trust Deed cannot pursue you for the balance of any amount still due to them.

See if you are Eligible today!

Need to speak to someone?
0141 406 3150

Advantages and Disadvantages


Payments are based on your circumstances and what you can reasonably afford to pay.
Your Trustee will contact your creditors, which will remove the pressure of unwanted phone-calls and letters.
All administration is dealt with by the Insolvency Practitioner.
Once the Trust Deed has become “Protected” creditors cannot take legal action to recover their debts and are bound by the terms of the Trust Deed.
It allows you to regain control of your finances
All costs are met from your monthly contribution payments which you make into a bank account held in trust for creditors. The Trustees fees and expenses are agreed between him and your creditors and are deducted from your monthly contribution payment and, if appropriate, from the sale of any assets.
At the end of the Trust Deed, normally a period of 4 years the balance of the debts included I your Trust Deed will be written off.


If you are a homeowner and have equity in your home this must be released to pay to your creditors. There are ways to do this without the need to sell your home, for example by re-mortgaging or by a third party or family member making payments on your behalf. Alternatively it may be possible to extend your monthly contribution payments at the end of the Trust Deed.
Creditors can vote against a Trust Deed becoming “Protected”.
There are certain professional bodies which prevent members from signing a Trust Deed.
You may find it difficult to obtain credit in the future. Credit reference agencies will assess the level of risk based your on financial history which may include the Trust Deed.

Why choose Trust Deed.org

We are experts in this field and well-established as Scotland’s leading Trust Deed company. Our friendly team welcomes new enquiries from people who either need help with their financial difficulties or wish to learn more about Trust Deeds. Once your Trust Deed is protected your creditors can no longer take action against you. 99% of our Trust Deeds achieve protected status. We also have excellent client feedback which you can read on Feefo. If you would like free, confidential and impartial advice about entering a Trust Deed, we would be pleased to meet with you or talk to you on the telephone. We are based in the heart of Glasgow and would be happy to make an appointment at a time that suits you.

Other Solutions

Feel a Trust Deed is not for you? Well we have many different debt solutions that cater to different debt levels and circumstances. Please click the links below.