Trust Deed Scotland | Enter a Trust Deed in Scotland

Trust Deed Scotland

A Trust Deed in Scotland is a formal route to resolve money worries where you’re guaranteed to freeze interest and charges and be able to repay what you can afford each month for 4 years. The Trust Deed Scotland route isn’t suitable for everybody, but if you are then it could enable you to become debt free again.


Around 7,000 people in Scotland enter a Trust Deed every year to clear their debt problems. It’s a popular debt solution for people that meet the criteria and want to avoid bankruptcy.   If you want to know whether you qualify for a Trust Deed Scotland, call Debt Support Trust charity on 0800 085 0226 or complete the debt analyser below.

Trust Deed Scotland for Debts

A Trust Deed is an alternative route to bankruptcy or a debt arrangement scheme to resolve debt problems in Scotland. It freezes interest and charges and allows people living in Scotland to repay what they can afford each month towards their debt. The payment is made to one company and you don’t have to talk to your creditors again. Once your Trust Deed proposal has been accepted by your creditors they will not be able to reverse the decision as long as you continue to make your regular monthly payments.


An example of a Trust Deed is: Debt: £30,000 Living in rented accommodation and has no assets Monthly payment: £200 (£9,600 in the pot after 4 years)   In a Trust Deed your insolvency practitioner will charge fees for managing the plan. These fees come out of the pot of money you pay in. The Trust Deed also has payments to register the solution and for other disbursements.   Fees and disbursements: £3,500 Repaid to creditors: £6,100 Debt written off at the end: £23,900   This means that 20% of your debt is repaid to creditors on a pro rata basis, with the creditor owed the most receiving a fair percentage of the money. If you fail to maintain payments to the Trust Deed Scotland then the debt will return to you and you will have to manage the debts again. You may also be made bankrupt.

Pros / Cons of a Trust Deed Scotland

For some people the debt solution is perfect. In the above example the person would write off £23,900 at the end of the debt solution and be debt free again. There are pros and cons to the Scottish Trust Deed.




  • You can gain protection from your creditors


  • You pay what you can afford each month


  • Your interest and charges are frozen


  • If you comply with the debt solution you will be debt free in 4 years




  • Your credit file will be impacted and a default will be added, lasting 6 years


  • If you have equity in an asset then this may have to be released. You will usually keep your house in a Trust Deed, especially if you have negative or low amounts of equity. You should not enter a Trust Deed if you have a large amount of equity e.g. £80,000 equity in your house with a £10,000 debt.


  • You can’t obtain credit in a Trust Deed above £500 without the permission of the Trustee.


  • If you work in the financial sector you should check your contract of employment as some employers won’t allow a person to enter an Trust Deed and continue to be employed at the company. Most companies don’t have this policy and it’s OK, but always best to check.


Who isn’t suitable for a Trust Deed?


There are some people who may not be suitable for a Trust Deed and we’ve listed some of these below


  • If your debt can be repaid in 4 years then the DAS may be a better solution.


  • If you have a property with more equity in it than debt, then you may not be suitable. The value of the property is completed on a prudent valuation, so less than the cost of selling the property on the open market.


  • If you have stocks, shares or any other asset which can be sold then you should use this money before entering a Trust Deed Scotland.


  • Your credit rating will be affected in any debt solution so if you want to protect this then another option should be explored.


  • If you think you could come into money, for example an inheritance, during the period of the Trust Deed then you may not wish to enter the Trust Deed. Any money you receive during the solution will have to be considered for the benefit of the creditors.


  • If you are due PPI and it would clear the full amount of the debt then it may not be suitable to enter a Trust Deed. Some people use their PPI claim to offer a lump sum offer to their creditors.


At Debt Support Trust we offer a full range of debt solutions, not just advice on a Trust Deed. If you need any debt or money advice speak to Debt Support Trust today and get advice on your debts.


Entering a Trust Deed Scotland


If you are considering entering any debt solution ensure you get debt advice first. The wrong debt solution could be detrimental to your assets or last longer than necessary. You can get help from a debt advice charity like Citizens Advice or call Debt Support Trust on 0800 085 0226.


For immediate debt help you can complete our debt analyser which takes 10 minutes to submit your information and receive an answer on your debts. The debt analyser will tell you if you’re suitable for a Trust Deed in Scotland.