Trust Deed

A Protected Trust Deed (PTD) is a legally governed procedure for individuals resident in Scotland who have serious debt problems and are struggling to repay their borrowings.

It is the equivalent to IVA legislation, which services the rest of the UK. Trust Deeds are regulated by The Bankruptcy (Scotland) Act 1985 and were introduced as an alternative to sequestration for those with overwhelming and unaffordable levels of debt.

Like an IVA, a Trust Deed allows the debtor to repay their debts over a fixed period of time. The amount which will be paid back is dependant on the individual case, and any remaining debt at the end of the pay-back spell is written off.

Please see our Trust Deed FAQs page for the most frequently asked questions by our clients. For free advice and information please call our One Advice Trust Deed advisors free on 0800 019 5870. 

How Does A Trust Deed Work?

A Trust Deed is only suitable to an insolvent debtor, meaning that they do not have enough disposable income to meet their minimum debt repayments.

Instead of making unaffordable payments to these debts, a Trust Deed will consolidate them into one monthly payment. You make one payment to these debts, and that amount is based on your finances so you only pay what you can afford.

Your creditors will vote on whether or not they accept your Trust Deed proposal. As soon as it is agreed no further action can be taken against you and all interest and charges are frozen.

At the end of the Trust Deed agreement, any outstanding debt is automatically written off which leaves you free of any unsecured debt.

With a Trust Deed you can benefit from:

• All unaffordable debt will be automatically written off
• One tailored monthly payment.
• Typical fixed payment period of 36 months
• Peace of mind from creditors.
• No more interest or charges on existing debt.

Am I suitable for a Trust Deed?

A Trust Deed requires the debtor to commit to making a monthly payment over a fixed period of time and to cooperate with the Insolvency Practitioner.

To find out whether a Trust Deed is the best solution to your debt free future, call our expert One Advice Advisors on 0800 019 5870. Alternatively fill in our online Debt Test form.

Please Note: A Trust Deed is only available to residents in Scotland. The remainder of the UK is serviced by IVA legislation.

Entering into an IVA may adversely affect your credit rating for up to six years from the date of approval.

Your property will be protected within an IVA but you may be required to release all or part of any equity during the period of the arrangement.

Failure to complete the term of an IVA can result in bankruptcy.

(In Scotland, a PTD is the equivalent to an IVA.)