Write Off Unaffordable Debts
With a Trust Deed…

Will Creditors Still Contact Me During a Scottish Trust Deed?

A creditor is the official term for someone you owe money to, such as a Credit Card company, a loan company or your local authority, for example, chasing Council Tax Arrears debt. Creditor contact can be anything from statements posted to you, text messages and telephone calls.

What Is a Scottish Trust Deed?

A Scottish Trust Deed is a legally binding arrangement available to residents of Scotland who are struggling to manage unsecured debts. It typically runs for four years and involves making one monthly payment to an insolvency practitioner, known as your trustee. This payment is then divided among your creditors. At the end of the term, any remaining eligible debt included in the agreement is written off.

Can Creditors Still Contact Me After Entering a Trust Deed?

Before entering a trust deed, many people face frequent contact from creditors through phone calls, letters, emails, or even visits. This constant pressure can be overwhelming. However, once your trust deed is in place, creditors included in the arrangement must deal directly with your trustee, not with you.

So long as you keep up with the agreed payments, you should no longer receive letters, calls, or other contact from those creditors. This change often brings significant relief to individuals who have been facing persistent contact for weeks, months, or even years.

If a creditor included in the trust deed tries to get in touch with you, simply direct them to your trustee and avoid further discussion. You should also let your trustee know about the contact, so they can remind the creditor of the rules in place.

Why Protected Status Matters
These protections only apply if your trust deed becomes protected. An unprotected trust deed is not legally binding, which means creditors can continue to apply interest, demand payments, and contact you directly. Your trustee will aim to ensure the agreement becomes protected so you can benefit from its full legal effect.

How Does a Trust Deed Become Protected?

Your trustee will send your trust deed proposal to your creditors and ask for it to be granted protected status. If creditors representing less than 33% of your total debt raise objections, then the trust deed will become protected. Creditors who do not respond within five weeks are assumed to have accepted the terms.

With careful planning and experience of creditor behaviour, most trust deeds are accepted by creditors, as they often prefer receiving consistent repayments through a formal arrangement over the uncertainty of no repayment at all. Once protected, your debts will have interest frozen, and creditors must deal only with your trustee going forward.

It’s not guaranteed that your trust deed will be protected, so it does help to explore your situation in greater detail and one of the reasons why choosing your Trust Deed company is important

Speak to the Team at Scottish Trust Deed

Scottish Trust Deeds are specific to Scotland, so it’s important to work with someone familiar with how the process works here. At Scottish Trust Deed, we’ve been helping people across Scotland take control of unmanageable debt for years. The solutions we help with include the Debt Arrangement Scheme and other alternatives.

No matter where you are in the country, we’re here to offer clear, practical guidance tailored to your situation. Call 0141 456 0430 today to find out more about how a Scottish Trust Deed could help you move forward.