Trust Deed 3 or 4 years | How long does a Trust Deed last?

Trust Deed 3 or 4 years

A question asked recently was, “Isn’t a Trust Deed supposed to last 3 years not 4”? It’s a very good question which we thought we’d share the information about. In 2013 Scottish Trust Deeds were changed. The legislation changed in multiple ways and one way was that the standard 3 year solution became a 4 year minimum.

The changes to Trust Deeds were to try and stop people entering the solution and failing to meet the repayments and it also helps get more money back to the creditors.

If you are in a Trust Deed or thinking about entering the debt solution you can get advice from charity experts by calling 0800 085 0226. Debt Support Trust provides quick and confidential advice to people living in Scotland.

Length of a Trust Deed?

Trust Deeds in Scotland can actually vary in length. The equity only or asset based Trust Deed would be closed quicker than standards plans; usually within 6 – 9 months. This is because once the asset has been offered to the creditors there’s no benefit to the case remaining open. This is the only route to a short term route and is seen as a full and final option.

Some solutions can last as long as 5 years, depending on the ability to repay the necessary amount to the creditors, but most Trust Deeds last 4 years.

Once the repayments have been made to the solution the plan is closed and you will be discharged. If you are offered the outstanding amount from a third party (friend or family) then you can be discharged early.

How Long is my Trust Deed?

Debt solutions can change and be longer or shorter depending on the criteria to the plan. You should be informed in advance before entering the plan of roughly how long the solution will take to complete.

In a Debt Arrangement Scheme your solution will last until all of the debt is repaid, however in a Trust Deed usually a percentage is written off at the end. Most people entering a Trust Deed today would be in the plan for 4 years.

If you are not sure how long your debt solution has left to go before it’s finished you should seek assurances from your Trustee. They can explain how much you have paid into your plan and how long is left to conclude the solution.

For help and advice on your Trust Deed contact Debt Support Trust today on 0800 085 0226.

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2 Responses so far.

  1. Melanie McPherson says:

    I entered a trust deed in June 2010 and was told that the length of the trust deed would only be 3 years. I a, still paying it and I am entering into my 5th year. I am fully aware that the legislation had change in 2013 but can they lengthen my trust deed longer even if I entered it in 2010 before the legislation change?

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    • Karen Johnstone Karen Johnstone says:

      Hi Melanie

      Thank you for visiting Trust Deed Advice and Debt Support Trust will be glad to give you advice on how you can resolve your situation. A Trust Deed is a formal debt solution which enables you to repay what you can afford each month. In your proposal you are telling creditors you will repay a set amount towards your debt. It’s the Trustee in your Trust Deed’s duty to gather in your money.

      Usually your Trust Deed is a fixed period but you must repay what you originally agreed. Can I ask, have you missed payments to your Trust Deed? Has your Trustee told you why your Trust Deed is being extended?

      If you would like advice in confidence you can call Debt Support Trust on 0800 085 0226.

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