What is a Trust Deed?

A Trust Deed is only available to residents of Scotland. If you are a resident of England, Wales or Northern Ireland, then an IVA is the equivalent legislation. 

If you need more information or advice about whether you are eligible for a Trust Deed, call our One Advice advisors on freephone 0800 019 5870 or take the One Advice Debt Test. 

What Is A Protected Trust Deed? 

A Trust Deed was introduced as an more practical alternative to Bankruptcy (sequestration) and allows debtors to regain control of their finances. It means that the debtor can avoid the most serious implications which are attached with Bankruptcy, such as the ability to gain credit in the future and the risk of losing your house.

The agreement is regulated by The Bankruptcy (Scotland) Act 1985 and it is a formal agreement between the debtor and their creditors, so you should be aware of any disadvantages of the Trust Deed. 

A Trust Deed is a legal agreement between you and your creditors. You will be allocated Trustee who deals with your case. They will hold a meeting with creditors and arrange how much each party will get.

A Trust Deeds gets its 'protected' status when it has been accepted by your creditors. This means that the creditors are bound into the Trust Deed agreement and they cannot take any legal action against you, as long as you keep up to date with monthly payments. 

When the Trust Deed has been accepted, all you need to do is make one reduced monthly payment towards your debt which will be evenly distributed. A Trust Deed is usually set over 36 months, with any unpaid debt being written off on completion of your agreement.

The monthly payments that you need to make to your Trust Deed is dependant on your financial circumstances. The amount that you pay is calculated after all living expenses and priority debts have been deducted.

Free Trust Deed Advice from One Advice

If you have any questions about Trust Deeds or you feel as though this might be the right debt solution for you, our advisors are on hand to help.

We have advisors dedicated to Trust Deeds and can help you get accepted. Call free on 0800 019 5870. 

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.)