Protected Trust Deed (Scotland)

How a Trust Deed becomes 'protected'

Your trustee sends the proposal to creditors. If creditors holding at least one-third in value of your debts object, or a majority in number object, the deed cannot be protected. Otherwise it becomes protected and binds all creditors – they can no longer chase you or take legal action for the debts included.

Who might a Trust Deed suit?

• You live in Scotland
• You owe at least £5,000 in unsecured debt
• You can make a regular monthly payment but cannot clear the debt in a reasonable time
• You want a fixed end date, usually four years

Your home and other assets

Your trustee will consider whether there is equity in your home. Options include excluding the property with creditor agreement, a relative paying an equivalent sum, or extending the contribution period. A vehicle needed for work and ordinary household items are typically retained.

Fees, credit file and the Register of Insolvencies

The trustee's fees are taken from your contributions. The deed is recorded on your credit file for six years and appears on the public Register of Insolvencies maintained by the Accountant in Bankruptcy.

Other Scottish options

If you can repay in full given more time, the Debt Arrangement Scheme protects you from creditors without insolvency. If you have little income and no assets, the Minimal Asset Process may be suitable.

Frequently asked questions