Trust Deed

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A trust deed in Scotland is an agreement designed for people who struggle with their monthly repayments. A trust deed helps to pay off your debt with the finances you have available each month. Once you enter a trust deed your creditors can’t apply further charges or interest. Don’t Fret About Debt works as a trustee to manage your trust deed.

The trustee acts on behalf of both you and your creditors in order to achieve the best possible financial compromise. This means you no longer make repayments to your creditors or deal directly with them.

You are protected from any recovery action during the term of the trust deed as long as you maintain your monthly contributions. At the end of the term, the remainder of your debts will be written off – your creditors can’t ask for any further funds.


The trust deed lasts for a fixed period of time, usually 4 years.

You no longer have to deal with your creditors yourself, the Insolvency Practitioner takes care of this.

You only make one monthly payment, which will be affordable, based on your income and expenditure.

Your creditors cannot take any action against you once the trust deed has become protected.

You may be able to continue acting as a director of a limited company.


In some cases, assets will have to be sold for the benefit of the creditors. We will discuss and agree this with you at the beginning.

There are some circumstances where trust deeds don’t become protected. For example, you need agreement from at least half your creditors. A failed trust deed may result in sequestration.

Your credit rating will be affected for around 6 years.


A trust deed is a legally binding agreement between you and a Trustee which allows the Trustee to deal with your creditors on your behalf.

Usually you will be required to pay your surplus income, after essential bills and living costs have been accounted for, on a monthly basis. A Trust Deed typically lasts 4 years. Your Trustee needs to be a licensed insolvency practitioner.

Our debt advisers can give you expert advice on Trust Deeds and the other options which are suitable to your personal circumstances. Advice from a qualified debt expert is essential to help you make an informed choice.

You can do this by simply filling out our form with your contact details. One of our team will then be in touch to discuss your circumstances. If a Trust Deed is the right option for you, we can complete the application process in one call.

You can also contact us by using the ‘contact us’ form or by sending an email to You can also chat to us on WhatsApp or by calling 0141 567 4567.

When you sign a Trust Deed, your monthly debt repayments will stop. Your income and expenditure will be assessed and you will pay your surplus income to your Trustee each month by way of a contribution. This will normally last for 48 months.

If you have any assets, these must be valued and any equity in your property will usually have to be realised for the benefit of your creditors. However, if you have a considerable level of equity in your property then there are debt solutions which exclude your home. Your debt adviser will make you aware of these.

After you have made your agreed level of contribution and any assets have been realised, your Trustee will pay a dividend to your creditors from the money you have paid.

Once your Trustee has paid the dividend to your creditors and all administration has been dealt with, they will apply for the discharge and close the case. Any debts incurred prior to the date you signed the Trust Deed will be written off and creditors will not be able to pursue you for these.

To be eligible for a Trust Deed, you must:

  • Owe at least £5,000 in unsecured debts which you cannot repay within 4 years.
  • Be a Scottish resident and have lived in Scotland for at least six months.
  • Be able to make a monthly contribution to your Trust Deed from your income.

Usually you will make a contribution to your Trust Deed each month for 48 months. Once you have met all of your obligations to the Trust Deed you will receive your discharge. However your Trustee will stay in office to tie up any outstanding administration and pay the dividend to your creditors. If you miss any payments during the course of the Trust Deed then you will not receive your discharge until these have been paid.

Your Trust Deed will be published in the Register of Insolvencies. However, your friends and neighbours won’t accidentally stumble across it. The only way someone will find out about it is if you tell them or they search for your name in the Register. Most people aren’t even aware it exists.


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