Scottish Trust Deed

A Scottish Trust Deed could write off part of your unsecured debt after three years

A Scottish Trust Deed could:

  • Reduce unsecured debt repayments to an affordable level
  • Put an end to demands from your lenders
  • Write off the unsecured debt you can't afford

Do You Qualify For a
Trust Deed?

Call 0800 970 7673

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

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Useful free guides

Download the Insolvency Service guide to dealing with lenders.

Download the information package from Scotland’s Insolvency Service.

Trust Deed callback

Complete this simple form and an adviser will get straight back to you

We will treat your call in the strictest confidence and you will only be asked to supply information required to find the best solution to your debts.

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.

Scottish Trust Deeds

Are you a Scottish resident? Do you have a significant amount of unsecured debt you can't repay in a reasonable amount of time? Can you still afford regular monthly payments, even if they're lower than you originally agreed?

If your answer to each of these questions is 'yes', a Scottish Trust Deed could be the ideal way of getting on top of your debt repayments once again, with lower payments over an agreed period - usually three years.

What's more, once a Trust Deed becomes 'Protected', your lenders will freeze interest and charges and will not to take any further legal action against you, provided you make your agreed regular payments. On successful completion, they'll write off any outstanding unsecured debts you have included in your Trust Deed.

Keep reading to find out just how a Protected Trust Deed could give struggling Scottish borrowers a realistic way of repaying their unsecured debts.

What is a Scottish Trust Deed?

A Scottish Trust Deed is a legally binding insolvency solution. It's exclusive to Scottish residents, but works similarly to an Individual Voluntary Arrangement (IVA), which is available in England, Wales and Northern Ireland.

A Trust Deed usually lasts for a shorter time than an IVA (three years, rather than five) and could help Scottish borrowers to repay as much as they can afford towards their unsecured debts without facing some of the downsides of bankruptcy, e.g. it can help them stay in their home, although you may be required to release equity in your property.

What are the advantages of a Scottish Trust Deed?

If you can no longer afford your monthly repayments towards your unsecured debts, entering a Trust Deed could be the best way of getting on top of the problem.

Once a Trust Deed becomes protected, you could:

  • Have a single monthly payment to make - calculated to be affordable after all your essential bills and other essential living costs have been covered
  • Be free of your unsecured debts on successful completion - usually after 3 years
  • Avoid any further legal action from your unsecured lenders
  • Avoid the personal and financial impact of bankruptcy
  • Freeze interest and charges.

How could I set up a Scottish Trust Deed?

Here at Debt Advice Now, we're committed to helping people deal with their debts - and if you have a substantial amount of debt you can no longer afford to repay every month, our partners could help you find the best way of meeting your payments again.

Why not call an expert adviser today to find out if a Scottish Trust Deed is right for you? They will discuss your finances with you (such as how much debt you have, how much you earn every month, what you can realistically afford to repay, etc.). And if a Trust Deed is suitable, they can help you work out what your new payments could be.

One of their Insolvency Practitioners (IPs) would help you draw up a Trust Deed proposal: a document showing your lenders how much you can realistically afford to repay every month.

Your unsecured lenders will receive a copy of your Trust Deed proposal, and the details will be published in the Edinburgh Gazette, a publication of official and legal notices, which is read by lenders, insolvency professionals and credit reference agencies.

Then, as long as there are no objections from more than half of your unsecured lenders, or from those who 'own' more than a third of your total unsecured debt, your Trust Deed will become protected by law - and you could be free of your unsecured debts in just three years.

What are the disadvantages of a Scottish Trust Deed?

All debt solutions come with some downsides - and Trust Deeds are no exception.

Before entering a Trust Deed, it's important to bear in mind that:

  • It requires commitment: regular monthly payments must be made for a period of (usually) 3 years
  • You won't be able to take out further credit while it's running
  • If you're a homeowner you may have to release some of the equity in your home
  • Your credit rating will be affected for six years - which is likely to make getting further credit during this time more difficult and/or expensive.
  • If your Trust Deed fails, you may be made bankrupt.

Despite these disadvantages, a Scottish Trust Deed could still be the most appropriate solution for you.

Is a Scottish Trust Deed right for me?

If you have a significant amount of unsecured debt that you can no longer repay, a Scottish Trust Deed could be a way of repaying your debts at an affordable pace.

To find out if a Scottish Trust Deed is suitable for you, just call 0800 970 7673 and talk to an expert adviser who can tell you more.

And if a Trust Deed isn't the best solution for you, they'll take you through the alternatives and help you find the best option for your circumstances.