The Scottish Trust Deed: Designed to solve your debt problems


Scottish trust deedA Scottish Trust Deed is not something that many people are familiar with but for people with serious debt problems it is a very effective debt solution that can help them out of debt and enable them to get their lives back to a sense of normality from the associated stress and worry that often accompanies debt problems.

In this article we explain what a Scottish Trust Deed is, the importance of ensuring it is protected and the benefits it offers as a debt solution.

What is a trust deed?

A Scottish Trust Deed is an arrangement between an individual and his or her creditors that enables a borrower with unaffordable debts to repay what they can afford for an agreed period of time and then write off the balance of the debt they can’t afford.

In practice this generally means agreeing an affordable monthly payment for three years after which the rest of the outstanding debts are written off.

Why should a trust deed be protected?

By ensuring the trust deed is legally protected this means that all creditors are then legally bound by the trust deed and must abide by its terms. Most importantly it means your creditors can no longer pursue you for payment or take legal action as long as you continue to make the single affordable payment you have agreed to.

Protecting a trust deed is done by informing your creditors of your intention to have it protected and as long as either half of your creditors don’t formally object or creditors who make up one third of your total debt don’t object then the trust deed can becomes protected.

The benefits of a protected trust deed

As with all debt solutions there are advantages and disadvantages and these must be considered in relation to your own personal circumstances


  • You only need to pay what you can reasonably afford
  • Your unaffordable debt is written off
  • You’ll be debt free in three years
  • Your creditors can’t take legal action against you
  • Your home and car can be protected in most cases

The downsides:

  • If you own your own home you’ll probably have to release equity
  • Your credit rating will be affected
  • You can’t take out credit during the trust deed

Seek professional debt advice before making a decision

Entering into a trust deed is a serious decision and you should always get professional debt advice before doing so to ensure you consider all the alternatives and options available to you. E-P Debt provide free debt advice on Trust Deeds and a wide variety of debt problems.

By E-P Debt

Leave a Reply

UK locations

Covering the whole of the UK

About us

» We are an independant organisation setup to help people across the UK solve their debt problems. Our debt managers help poeple everyday to improve their finances and get their lives back on track. Read more

Get in Touch

Head office:

16 Woodside Crescent,
Glasgow, G3 7UT

0800 007 5021
To view our other UK offices click here.