Trust Deed

What Is a Trust Deed?

Available only in Scotland, a Trust Deed is a legally binding formal arrangement between you and your creditors to repay some of your unsecured debts.

A Trust Deed can only be carried out through a licensed Insolvency Practitioner (IP) who will then act as the Trustee. This form of debt solution is designed to provide debt help to individuals who are unable to repay their debts (more than £5,000) over a period of time.

At the end of the period any remaining debt not paid off over this time, is usually written off by creditors.

Am I eligible for a Trust Deed?

(1) Do you live in Scotland?
(2) Have you got more than £5,000 of unsecured debt?
(3) Are you employed (or self-employed) with at least £50 surplus income before you pay your debts every month?

If you can answer ‘yes’ to these three questions, you are likely to be eligible for a Trust Deed.

It’s always worth having a chat with our team – depending on your circumstances, it may be that a Debt Arrangement Scheme (DAS), Debt Management Plan (DMP) or Sequestration are better options for you.

How do I apply for a Trust Deed?

You don’t need to worry about the process – the team at Debt Busters will set up and manage your arrangement for you.

All we need to start things moving is an idea of your income, outgoings and debts so we can make sure this is the best solution for you.

STEP ONE: Speak to one of our specialist advisers in confidence. Tell us about your situation so that we can help you deal with it.

STEP TWO: If a Trust Deed looks like the best option for you, we will work with you to create a proposal to put forward to your creditors.

STEP THREE: Your creditors need to agree to the proposal so that the Trust Deed becomes protected. As long as more than half in number or a third or more in value do not object to it, your Trust Deed will be protected.

STEP FOUR: Once your Trust Deed is in place, and you have made your first payment, you’re protected from further contact and legal action from your creditors. Finally, after you’ve made your agreed monthly payments over 4 years and your remaining unsecured debt will be written off.

Things To Consider


  • Fixed timeline, usually 4 years
  • Affordable monthly payments
  • No more hassle from your creditors
  • No more interest and charges
  • No hidden fees


  • (a) if the arrangement or deed fails, the risk of bankruptcy;
  • (b) homeowners may need to release equity from the value of their homes to pay off debts, and that a re-mortgage may attract higher interest rates or, if no re-mortgage is available, an individual voluntary arrangement may be extended for 12 months;
  • (c) there are restrictions on the expenditure of a person who enters into an individual voluntary arrangement or a protected trust deed;
  • (d) the customer's lenders or owners may not approve the individual voluntary arrangement or the protected trust deed;
  • (e) only unsecured debts included within the individual voluntary arrangement or protected trust deed may be discharged at the end of the period and unsecured debts not included remain outstanding;
  • (f) Negative effect on credit rating and ability to source credit, restrictions on obtaining credit?
  • (g) Customer's details will be entered onto a public register and your Trust Deed is likely to be noted on your credit file

Speak to a debt advisor today
0333 344 1617
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