Who Can Enter A Protected Trust Deed | Scottish Debt Solutions

Who Can Enter A Protected Trust Deed

Who's Suitable For A Trust DeedOne of the most common questions in the debt industry is “Am i eligible to enter a protected trust deed?” and the answer is it depends on a range of factors.

Despite all the claims you will see on the tv about writing off up to 90% of your debt and being debt clear in x amount of months, it’s not quiet that simple.

There are a range of factors which could determine whether a protected trust deed is the right debt solution for you or if it could make your situation worse.

Suitable For A Protected Trust Deed

Level of Debt

In order to enter a protected trust deed, most debt advice organisations will advise you’ll need at least £10k of debt. The reason for this is because a lower debt will mean you will likely be able to repay the full debt within a reasonable amount of time.


Some employers or industries will stop people from entering any insolvency debt solution, such as sequestration or a protected trust deed. It’s important you check your employment contract before entering any insolvency solution.


Generally speaking you’ll need to be in employment to be suitable for a protected trust deed. This is because you’ll need to have a disposable income to make monthly payments.

Income & Expenditure

If you don’t have any disposable income to pay into the protected trust deed you won’t be suitable to enter it. For most people it’s possible to cut back and find spare money but it’s important to make sure you have enough for monthly essentials.


Any equity in property or other assets above a certain amount have to be included. It’s important to know exactly what will or won’t be included before entering the debt solution.

Type of Debt

Secured loans cannot be entered into any debt solution and certain creditors will automatically reject any protected trust deed proposal. A debt advice organisation should be able to tell you whether your debts can be included or not.

A protected trust deed is an excellent solution when entered into by a person who is suitable and so long as they get good debt advice there should be no problem.

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