Debt Resources > Debt Solutions > Trust Deed

Scottish Trust Deeds explained

A Scottish Trust Deed is Government legislation that is designed to help Scottish resident’s clear their debt. It is a legally binding arrangement between you and your creditors where you agree to repay a percentage of your total debts based on what you can realistically afford over a period of 36 months. The remainder of this debt will then be written off and you walk away free from debt.

This differs from many other debt solutions in that it can be much more flexible and affordable while at the same time providing protection from your creditors.

How does it work?
To enter into a Trust Deed you will need the help of a licensed Insolvency Practitioner who will assist you with the preparation work. This person will be known as the “Trustee”. The Trustee will go through all details with you prior to signing the agreement and then proceed to liaise with your creditors on your behalf. Later, in the case of the Trust Deed becoming ‘protected’, the Trustee will distribute contributions to your creditors.

How long does it last?
The arrangement usually lasts for a period of 36 months in which you will have agreed to a monthly payment schedule based on what you can actually afford. Once this has been agreed all documentation is drawn up and sent to you for signing. The Trustee will then place a notice and your creditors will have 5 weeks to respond with their decision. The Trust Deed will then become a 'Protected Trust Deed' if less than one third of your creditors submit a written rejection against it. If you have debts over £10,000 and are currently struggling to meet your repayments, This may be the right solution for you.