A Protected Trust Deed is a formal debt solution available in Scotland that could help you regain control of your finances. Find out how it works, who it may be suitable for and whether it could help you take the first step towards becoming debt free.
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May not be suitable in all circumstances. Fees apply. Your credit rating may be affected.
A Protected Trust Deed is a formal legal agreement available in Scotland for people who can no longer afford to repay their unsecured debts in full.
Instead of dealing with multiple creditors, you’ll usually make one affordable monthly payment based on what you can realistically afford after covering your essential household costs.
If your Trust Deed becomes protected, creditors included in the arrangement are prevented from taking further action to recover those debts, provided you continue to meet the agreed terms.
Once you’ve successfully completed your Trust Deed, any remaining unsecured debt included in the arrangement will be written off, giving you the opportunity to move forward with greater financial confidence.
Because every financial situation is different, a Protected Trust Deed isn’t suitable for everyone.
Our experienced advisers will assess your circumstances and explain whether it’s the right solution for you.
It’s completely natural to have questions before choosing a debt solution. Below you’ll find answers to some of the questions we’re asked most often about Protected Trust Deeds. If you’d like advice tailored to your circumstances, our experienced team is here to help.
Eligibility depends on a number of factors, including your income, household expenditure, assets and the amount of debt you owe.
Our advisers will review your circumstances carefully before recommending whether a Protected Trust Deed or another debt solution is the most appropriate option.
Complete our free online enquiry form to find out whether you could qualify
Most Protected Trust Deeds last around four years, although the exact duration depends on your individual circumstances. If you own assets of significant value, the Trust Deed term may need to be extended as an alternative to the sale of those assets.
We’ll review your circumstances carefully and provide tailored advice, including explaining how long your Trust Deed is expected to last before you make any decisions.
Many homeowners successfully complete a Protected Trust Deed without having to sell their home. However, any equity in your property will need to be considered as part of the arrangement.
If you have more equity in your property than you have unsecured debt, it is unlikely a Trust Deed will be an appropriate solution for you and you may wish to consider the Debt Arrangement Scheme [link to DAS page] instead, as this does not include your assets.
We’ll explain exactly what any implications for your home and other assets would be in a Trust Deed as part of our tailored advice process.
Most people are able to keep a vehicle, particularly where it’s needed for work, family commitments or essential day to day living.
Whether this applies depends upon your individual circumstances and the value of the vehicle.
We’ll explain exactly what any implications for your vehicle would be in a Trust Deed as part of our tailored advice process.
Yes. A Protected Trust Deed is a formal insolvency solution and will be recorded on your credit file for six years. While this may make obtaining further credit more difficult during the arrangement and for a period afterwards, many people decide that resolving unaffordable debt is the most important priority in the short term and can look forward to building their credit profile back up again in the future.
A Trust Deed will include most of your unsecured debts, including credit cards, personal loans, overdrafts, storecards, payday loans, arrears of rent and council tax. There are some notable exclusions though, including student loans and fines owed to the crown.
If you’re not sure who you owe money to, our advisers can quickly help you identify all debts on your credit file. They will review all of your debts and explain if any would not be included in a Trust Deed.
Once your Trust Deed becomes protected, creditors included in the arrangement are no longer legally allowed to take any further action to recover those debts, provided you continue to comply with the terms of the Trust Deed.
It can sometimes take a while for creditors to fully update their systems that you are in a Protected Trust Deed, however you should find that creditor contact slows down fairly quickly after your Trust Deed is signed.
If your income or household circumstances change during your Trust Deed, it’s important to let your Trustee know as soon as possible.
In many cases, the arrangement can be reviewed to reflect your new circumstances.
The Trustee will explain the most appropriate approach once he understands your individual situation.
Neither solution is automatically “better”.
The Debt Arrangement Scheme allows you to repay your debts in full over time, whilst a Protected Trust Deed allows unsecured debt you cannot afford to repay in full to be written off the arrangement has been successfully completed.
The best solution for you depends entirely upon your financial circumstances, income, assets and long term goals.
Our advisers will always speak honestly and impartially when advising upon the best course of action so that you can make an informed decision about what’s right for you.
Or call us on 0141 566 7038
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Here to help
You don’t need to decide whether a Protected Trust Deed is the right solution before getting in touch. Our experienced team will take the time to understand your circumstances, explain all of the options available and help you make an informed decision. Your consultation is free, confidential and without obligation.
Or call us on 0141 566 7038
