Resolving your Unsecured Debts with a Trust Deed

A Trust Deed is a form of Government legislation which is backed by Scottish legislation designed to help only Scottish resident’s clear unsecured debt. The Trust Deed acts as formal agreement between a debtor and their creditors where the debtor agrees to pay an affordable monthly payment over a fixed period (usually three years).

Once agreed, creditors can no longer add any interest and charges to the debtor’s total debt. The Trust Deed once protected aims to save the debtor from creditor demands, harassment and accruing further interest on the debts. A Trustee is appointed to deal with your entire Debt situation over the period of your Trust Deed. All the Debtor has to do is complete regular reviews and make the agreed monthly contributions into the plan. On completion of the Trust Deed any unpaid remaining Debt is then written off entirely.

In short with a Trust Deed you can:

  • Write off the debt you cannot reasonably afford
  • Get full protection from creditors demands and harassment
  • Get your interest and charges frozen
  • Potentially be debt free in 36 months


  • Your Trustee deals directly with your creditors meaning you are no longer required to
  • Cut your monthly outgoings by making just one reasonable monthly payment from your agreed disposable (surplus) income
  • With a Protected Trust Deed, your creditors cannot take further action against you, arrest your earnings or continue to add charges and interest
  • Unless your employers are one of your creditors, there is generally no need for them to know that you have signed a Trust Deed
  • Trust Deeds will normally last three years. When it ends, the remaining debt is written off and you may be able to start afresh
  • Trust Deeds are generally more flexible to the debtor’s circumstances and generally cost less to administer than a sequestration

As with most plans there may be some disadvantages as below:

  • Existing wage arrestments or other diligence may continue to be effective. It is important to fully disclose any actions that may or have already been taken against you in order that the most appropriate arrangements can be made to deal with these or if at all possible to arrange for them to be released. At worst, the effects of these actions need to be taken into account when creating the proposal for the Trust Deed
If you fail to adhere to the terms of the Trust Deed, your home and other assets may be at risk. Prior to you signing the Trust Deed, which is a legally binding document, our staff will fully explain the implications of the Trust Deed to you to ensure that the proposal is affordable, achievable and suitable to your personal circumstances