Trust Deed FAQ

Find answers to frequently asked questions about Trust Deeds

A Trust Deed could help you to:

  • Stop lender demands
  • Bring down your unsecured debt repayments
  • Write off debt upon successful completion

Have any questions?

Call 0800 970 7673 or fill in our simple form to recieve a no obligation call back from a friendly, experienced adviser.

Fees & Key information

Find out more about the fees involved with each debt solution.

Find out if you qualify for a Trust Deed

Tell us about your situation

Tell us about you

Useful free guides

Download the Insolvency Service guide to dealing with lenders.

Download the information package from Scotland’s Insolvency Service.

How we could help

Here is an example of how a Trust Deed could make your debts more manageable.

Credit card £21,000
Personal loan £3,000
Store card A £4,000
Store card B £3,000
Total owed £31,000
Once Trust Deed is in place:
New repayments £244
New repayments £8,800

Repayments are based on affordability and vary from case to case.

Need debt advice?

Call 0800 970 7673or fill in our simple form to receive a free no obligation call back from a friendly, experienced adviser.

What is a Trust Deed?

It's a formal insolvency solution that is exclusive to residents of Scotland. It works by reducing your unsecured debt repayments to a manageable level, and writing off the unsecured debt you can't afford after (normally) three years. Your new monthly payments will be based on what you can afford after you've taken care of your other essential costs.

How long will a Trust Deed take?

The majority of Trust Deeds take three years, but it can vary according to what is agreed with your lenders.

Your Trust Deed could also take longer if you ever need to take a payment break (e.g. due to an unexpected cost that prevents you making payments for a month). If this happens, you'll simply pick up from where you left off - the total number of payments you make will remain the same.

How can I apply for a Trust Deed?

Just call 0800 970 7673, or fill in the free callback form at the top of the page and an expert adviser will get back to you.

If they think a Trust Deed is right for you, they'll pass you onto a qualified Insolvency Practitioner (IP), who can help you arrange the Trust Deed.

Of course, it may turn out that a Trust Deed isn't the best solution for your circumstances, in which case they'd help you find a more appropriate solution.

How do I know if I qualify for a Trust Deed?

You'll only qualify if you genuinely can't afford to repay your unsecured debts in full within a reasonable period of time, but you must still be able to commit to regular monthly payments.

However, keep in mind that even if you do qualify, you'll only be protected against enforcement action by your lenders (e.g. bankruptcy) if your Trust Deed becomes protected. This requires approval by at least 50% of your lenders, or from lenders accounting for a combined 33% of your overall unsecured debt.

How much would I pay each month?

You'll be expected to pay as much as you can afford. When you apply for a Trust Deed, your IP will help you calculate how much you can pay each month by looking at your income and outgoings and working out a budget. Your lenders will expect your payments to be as high as realistically possible, so you might be asked to economise in a few areas if they think you're spending more than reasonable.

The amount you pay each month generally stays the same, but if your available income changes your monthly payments may change accordingly.

Does a Trust Deed cover secured debt?

No, but it can still help. By reducing your unsecured debt repayments to an affordable level, a Trust Deed should ensure you can also afford all your other essential costs - including your mortgage and other secured debts.

What are the advantages over bankruptcy?

A Trust Deed is very unlikely to lead to the repossession of your home - unlike bankruptcy. It could also enable you to repay a greater portion of your unsecured debts.

However, bankruptcy can actually be a better option for some people. Bankruptcy is normally over more quickly, for example, and doesn't necessarily require regular monthly payments.

What are the disadvantages of a Trust Deed?

A Trust Deed has its disadvantages, just like any other debt solution. Most notably, your credit rating will be affected, which could make obtaining further credit a lot more difficult for six years.

Although you will be able to keep your home with a Trust Deed, homeowners are often required to release equity from their property as part of the arrangement.

Just remember that not getting help with your debts could have even more serious consequences overall.