Debt solutions
Protected Trust Deed
A formal debt solution for residents of Scotland. One affordable monthly payment, usually for four years, with the remaining debt written off at the end.
- Single monthly payment based on what you can afford
- Legal protection from creditors once protected
- Interest and charges on included debts frozen
- Remaining unsecured debt written off at the end
A PTD may not be suitable in all circumstances and fees apply. Entering into a PTD will affect your credit rating.
A PTD at a glance
- Typical length
- Usually four years
- Scotland only
- Available to residents of Scotland
- Legally binding once protected
- Creditors cannot take further action
- Debt written off
- Unsecured debt left at the end is written off
Understanding trust deeds
What is a Protected Trust Deed?
A trust deed is a formal agreement between you and your creditors, available only in Scotland. You transfer your rights to certain assets and income to a trustee, a licensed Insolvency Practitioner, who manages the arrangement and distributes your payments to creditors.
A trust deed becomes protected when creditors do not object in sufficient numbers. Once protected, it is binding on all your creditors. They cannot take further action against you or add interest and charges to the debts included. You make one monthly payment, usually for four years, and any unsecured debt left at the end is written off.
Living in England, Wales or Northern Ireland? An IVA works in a similar way.
The details
How a Protected Trust Deed works, step by step
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Free initial chat
A confidential conversation with an advisor to understand your situation. No pressure, no obligation.
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Review your options
We explain every solution you qualify for, not just a trust deed, so you can make an informed choice.
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Sign your trust deed
A trustee prepares the arrangement based on what you can afford and notifies your creditors. If creditors do not object in sufficient numbers within five weeks, the trust deed becomes protected and binds them all.
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Make your payments
You pay one monthly amount, usually for four years. When you have met the terms, the remaining unsecured debt included is written off.
A PTD could be an option if you:
- Live in Scotland, or lived there in the last 12 months
- Have unsecured debts of £5,000 or more
- Have a regular income and can commit to a monthly payment
- Cannot realistically repay your debts in full within a reasonable time
An advisor will confirm whether you qualify and whether a PTD is the most suitable option for you.
Fees and costs
Initial advice is free. If you enter a trust deed, the trustee's fees are taken from your agreed monthly payments, not charged on top of them. All fees are set out before you sign and explained clearly so you can make an informed decision.
A PTD may not be suitable in all circumstances and fees apply.
Weighing it up
Is a PTD right for you?
Advantages
- One monthly payment, usually for four years
- Interest and charges on included debts frozen
- Creditors cannot take legal action against you
- Remaining unsecured debt written off at the end
- Shorter than a typical IVA, no court involved
Things to consider
- Your credit rating is affected for six years
- Recorded on Scotland's Register of Insolvencies
- Homeowners may need to release equity
- Valuable assets, such as a car, may be sold
- If not protected, creditors can still pursue you
FAQs
Frequently asked questions
Will a PTD affect my credit score?
Yes. A trust deed stays on your credit file for six years from the date it is signed. This can make it harder to get credit during that time.
Will I lose my home?
Not automatically. If you have equity, you will usually need to deal with it as part of the arrangement, for example by remortgaging or paying extra contributions. An advisor will explain what applies to you before you sign.
Which debts can be included?
Most unsecured debts, such as credit cards, loans, overdrafts and catalogue debts. Secured debts, court fines, child maintenance and student loans cannot be included.
What happens if I miss a payment?
Talk to your trustee as soon as possible. Payments can often be adjusted if your circumstances change. Missed payments without agreement can cause your trust deed to fail, and could lead to sequestration (Scottish bankruptcy).
Can I get free debt advice elsewhere?
Yes. Free, impartial debt advice is available from charities and organisations listed at MoneyHelper, a service backed by government.
Have a different question? Get in touch. We are happy to help.
Take the first step today
A confidential chat with an advisor costs nothing and could show you options you did not know you had.
All formal arrangements are serviced by Ebenegate Limited, authorised to act as Insolvency Practitioners by the Insolvency Practitioners Association (IPA). A PTD may not be suitable in all circumstances and fees apply. Your ability to obtain credit will be affected for six years.