What is a Trust Deed Scotland?

A Trust Deed is a formal agreement between you and your creditors to pay back what you can afford towards your debts.

Once Protected it is an extremely powerful legal tool to help you back on the road to financial stability. It is designed for people who have taken out too much debt and are struggling to meet their monthly repayments.

The minimum repayment period for a Trust Deed Scotland is 48 months* (4 years) unless an alternative arrangement is agreed. You will be required to pay a set amount per month for the 48 month (or longer) period. At the end of term, provided that you have met your obligations and the Trust Deed is not extended, you will be discharged from any obligations and outstanding unsecured debts.

* The minimum period for a Scottish Trust Deed is 48 months, although depending on your circumstances the payment period could be longer.


Crown

Is this a Legitmate Scheme?


Yes absolutely. The Trust Deed Solution was established by and is governed by Protected Trust Deed (Scotland) Regulations 2008 and constitutes a formal repayment proposal presented to a debtor's creditors via an insolvency practitioner.

See more information here

See If you Qualify

Question 1 of 5

Don’t feel alone in debt

Group of people 7,283 Trust deeds processed last year in Scotland (2018/19)
Figures taken from AiB
Pig coin bank £25 million Total repaid to creditors through Trust Deeds
(PTDs concluded, where a dividend was payable)
Figures taken from AiB
Signature letter 60% Average reduction in monthly repayments


To find out more about managing your money and getting free advice, visit Money Advice Service, an independent service set up to help people manage their money.

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Trust Deed Example

Here is an example of how a Scottish Trust Deed could make your debts affordable.

Example Unsecured Debts

1 Personal loan £8,000
2 Credit card 1 £6,812
3 Council Tax £4,092
4 HMRC Debts £5,399
4 Over payments £5,200
4 Overdraft £700
Total Owed £30,204

Your Monthly Repayments Would Be

Before
a Scottish Trust Deed
£748
(total contractual repayments)
After
a Scottish Trust Deed
£295
(total contractual repayments)
Reduced by
60%

* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances. For more information on our fees click here

Do I qualify?

To qualify you must meet the following criteria:

  • You currently live in or have lived in Scotland within the last 12 months, or have a place of business in Scotland
  • You have debts of £5,000 or more
  • You are able to pay a monthly contribution from income and/or have realisable assets that will enable a minimum return to creditors of 10p in the pound
  • You are insolvent (you are unable to pay your debts as they fall due and/or your liabilities are greater than your assets)
Qualify calculator
Advisors help

How Can I Apply?

We make it as easy as possible. Here’s how:

  • Simply fill out the form here or give us a call on 0800 193 1024 and one of our experienced advisors will call you back at a time requested by you.
  • If you decide to proceed then an adviser will arrange a face-to-face meeting at your home, another convenient place or at our office in Glasgow, should this be convenient. Alternatively, a further telephone meeting will be arranged should a face to face meeting not be possible, for whatever reason.
  • At the meeting an adviser will assess your financial position and advise you of the options available to you.
  • If you are suitable for a Trust Deed and choose to go ahead with it, you will be asked to sign the relevant documents after being given time to fully consider your decision. This will involve more than one meeting.

Pig coin bank How much does it cost to setup?

Our initial advice is free and there is no cost if you change your mind after having met with one of our advisers. Should you choose to enter into the debt solution then there will be a charge for our services. Your adviser will explain this fully and further information can be found by clicking here.

ScalesAm I dealing with a legitimate company?

We are authorised and regulated by the Financial Conduct Authority (FRN769794) so you can rest assured our advice is compliant. We can provide advice on Trust Deeds, Debt Arrangement Schemes Minimal Asset Process (MAP) and Sequestration.

Download our free debt brochure

Get an overview of all the available debt solutions in our debt guide;

  • Scottish Trust Deeds
  • Debt Arrangement Schemes
  • Minimal Asset Process
  • Debt Management Plans
  • Bankruptcy (Sequestration)

Download our free debt brochure

Get an overview of all the available debt solutions in our debt guide;

  • Scottish Trust Deeds
  • Debt Arrangement Schemes
  • Minimal Asset Process
  • Debt Management Plans
  • Bankruptcy (Sequestration)

You can browse each debt solution at your own pace and see which one is right for you, or simply visit our for a more in depth understanding of each available solution, along with a comparison table to compare each one.

You can browse each debt solution at your own pace and see which one is right for you, or simply visit our for a more in depth understanding of each available solution, along with a comparison table to compare each one.

Insolvency Map

See the most popular areas for Trust Deeds in Scotland for 2018

Trust Deeds in Scotland are fast becoming the debt solution of choice for people who are struggling with their debts and want to avoid bankruptcy.

Our new interactive map combines data from the AiB (Accountant In Bankruptcy) to show the countries most popular hot spots for the Trust Deed debt solution.

Simply click on an area on the map to see how many people took out a Scottish Trust Deed in 2018.

Insolvency Map

Trust Deeds in Scotland are fast becoming the debt solution of choice for people who are struggling with their debts and want to avoid bankruptcy.

Our new interactive map combines data from the AiB (Accountant In Bankruptcy) to show the countries most popular hot spots for the Trust Deed debt solution.

Simply click on an area on the map to see how many people took out a Scottish Trust Deed in 2018.

See If you Qualify

Question 1 of 5

Debt Collector & Bailiff Help Guides

Getting hassle from a creditor or debt collector?

Dealing with creditors and debt collectors can be daunting. Harrassing phone
calls, debt letters and home visits are enough to increase stress levels and
make you bury your head in the sand further.

We created these handy guides section on how to deal with creditors, debt
collectors and bailiffs. Simply search for the company thats corresponding
with you and read our guide on how to deal with them.

Each guide comes with expert advice, videos, tips and downloadable letters
which you can use to keep them at bay

Debt Collector & Bailiff Help Guides

Getting hassle from a creditor or debt collector?

Dealing with creditors and debt collectors can be daunting. Harrassing phone
calls, debt letters and home visits are enough to increase stress levels and
make you bury your head in the sand further.

We created these handy guides section on how to deal with creditors, debt
collectors and bailiffs. Simply search for the company thats corresponding
with you and read our guide on how to deal with them.

Each guide comes with expert advice, videos, tips and downloadable letters
which you can use to keep them at bay

Frequently Asked Questions

Got a question? Maybe we can have an answer for you here…

Do I get my property back when I get my discharge?

Once you have transferred assets to your trustee, it is his duty to sell them for the benefit of your creditors. Any assets or money left over after all the expenses and debts have been paid should be returned to you.

When will I be discharged from my debts?

It will say in your agreement how long it is to run for and when you will be discharged. Normally it is 4 years from the date you sign it (though it can be longer). But unlike in a sequestration, this discharge is not automatic.

Your creditors must discharge your trustee before you can be discharged.

This means a Protected Trust Deed may remain open in the Register of Insolvencies for some time after the 4 years. Your discharge is usually binding on all your creditors. This means they can’t chase you for the money you owed them before you signed the agreement.

But there are 2 exceptions. These are;

  1. Debts not covered by the agreement (like over-payment of social security), or if a creditor who objected to the agreement can prove in court that he would have got more of his money back if you had been made bankrupt. This is a very rare event indeed.
  2. If the Trust Deed fails to become protected, your discharge does not stop creditors who objected in the first place still chasing you for the money you owe them.
Will credit reference agencies blacklist me?

No, you won’t be blacklisted but you may find it difficult to obtain credit whilst on the plan and for a period after. Once the plan is complete your credit rating will start to improve.

There are things you can do to help improve your credit rating, like taking out a credit card and paying it off in full every month.

This shows lenders that you can borrow money responsibly and pay it back on time and in full. This is one of the most effective ways to improve your credit file.

Can my trustee sell my house?

Yes. They can sell all the property, but, if your house is jointly owned or if it is the family home, your trustee needs the permission of the other owner or anyone else who has rights to live in the house.

If the other owner refuses permission to sell, the trustee can go to court to try and force what is known as a division and sale.

If this is granted, the house can be sold, and your share of the money raised will go to pay off your debts. The other owner will get their share).

Normally if you have Equity in your property a small re-mortgage to raise funds will prevent home being sold.

Can I be sequestrated for any other reason?

Sometimes, but it doesn’t happen very often.

  1. Your trustee can petition to have you sequestrated at any time they think it would raise more money for your creditors.
  2. If one of your creditors thinks they can prove that they can get more of their money repaid if you are sequestrated, they can present a petition in the court for your sequestration, even if it has been ‘protected’.

These are both very rare events. If you run up more debt after you have signed the Trust Deed, the people you owe the new debt to can petition for your sequestration.

READ MORE FAQS HERE