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Your Guide to Scottish Trust Deeds

How do Scottish Trust Deeds work?

Step One:

A licensed Trustee will work with you to establish how much you can afford to pay each month towards your Trust Deed. They will advise you what the implications of a Trust Deed are for you and ensure you will be able to afford it and still have enough money to support you and your family.

Step Two:

Once you sign your Trust Deed, proposals are sent to the people you owe money to. These proposals show how much you propose to pay, how you propose to deal with any assets and how much money the creditors can expect to be returned.

The people you owe money to have five weeks to object or agree. If they don’t respond then, according to Scottish Law, they are treated as having agreed. If creditors whom you owe more than a third of your total debts to object to the proposal, then your Trust Deed will fail to become a Protected Trust Deed. At this point your Trustee will give you further advice.

Step Three:

If you are like 99% of all our clients, then your Trust Deed will become protected. You will then begin making payments to your Protected Trust Deed.

Step Four:

Once you have made all your agreed payments to your Trust Deed and complied with all its terms, the Trust Deed will be concluded and you will receive a discharge from your debts. You will no longer be liable to repay them.

Should I enter a Trust Deed?

A Trust Deed may be an ideal debt solution if:

  • You have unsecured debts of more than £8,000
  • You would prefer a Debt Expert dealt with your Creditors
  • You have a home and want to protect it from your unsecured creditors.

Advantages of a Trust Deed

  • Repayments are calculated against what you can afford
  • You are protected from those you owe money to
  • A Trustee will communicate with those you owe money to
  • All administration is dealt with by the Trustee
  • You can protect your home from unsecured creditors in protected trust deeds.

Disadvantages of a Trust Deed

  • A Trust Deed will damage your credit rating
  • If you do certain types of jobs you may be forbidden from applying for a Trust Deed in Scotland
  • Homeowners with equity must realise this or risk losing their home
  • Creditors can object to a Protected Trust Deed

Find out if you qualify for debt relief

  • Talk to an expert 0141 227 7730

Brought to you by Peter Dean


Peter Dean has helped thousands of people with quality money advice, through Your Debt Expert.

Peter Dean is one of the most highly-qualified and experienced debt solutions professionals in Scotland. He established Carrington Dean in 2001 following a distinguished financial career in which he became a Partner with one of the world’s leading accountancy firms and a recognised insolvency expert.

Peter is a Fellow of the Chartered Management Institute, a Fellow of the Association of Business Recovery Professionals, a Member of the Chartered Institute of Arbitrators, and a Member of the Insolvency Practitioners’ Association.


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Peter Dean