Trust Deed

Scottish Trust Deed

What is a Trust Deed?

A Trust Deed is a formal arrangement between you and your creditors whereby you pay an affordable payment per month for 48 months* and at the end write off the debt you can’t afford to pay.

Can a Scottish Trust Deed make your debts affordable?

Here’s an example of how a Scottish Trust Deed can improve your financial situation:

Frequently asked questions – Trust Deeds

  • Do all of my creditors have to agree for it work?

No  – your creditors do not all have to agree to the Trust Deed for it to work. The law states that provided your Trustee correctly follows the Trust Deed Protection Procedure, then unless a certain amount of your creditors actively object to the Trust Deed, the Trust Deed will proceed as if all creditors have agreed to the Trust Deed. This is the case.

  • Which creditors can stop it being protected?

Unless objections are received within a five week time limit from more than half of the number of your creditors, or more than one third in combined value, then the Trust Deed will become protected and backed by government legislation (the Protected Trust Deeds (Scotland) Regulations 2013).

From signing the Trust Deed to having it registered as protected takes about 7 weeks. A notice of the deed is placed in the Register of Insolvencies, creditors are contacted and given 5 weeks to object to it, and thereafter the Accountant in Bankruptcy (AIB) registers the Trust Deed as “protected”. The following timeline can be followed:

  • Will my credit rating be affected?

We’ve written a blog article to explain the effect on your credit rating more fully.

Timetable to having a Trust Deed protected:

1Sign Trust Deed
2-6Proposal considered by Creditors (5 week objection period)
7Registration of Trust Deed with AIB Protection
  • What will happen to my home

If you own your home, then the worry of losing your house may well be what has prompted you to take advice on your financial position. We recognise this and how your home is dealt with will underpin the basis of whether a Trust Deed is the correct option for you.

The Trustee only has an interest in any equity in your home, and provided the circumstances are appropriate, this equity can be properly managed (for example by an extension to the Trust Deed duration, or by the exclusion of the home from the Trust Deed). Ask to see one of our case study packs to see some of the possibilities available.

  • What will happen to my car?

This largely depends on whether your car is owned or on Hire Purchase, what its value is, and how alternative travel arrangements would impact on your family budget. The key to a successful Trust Deed Proposal is to strike the correct balance between your interest in retaining your car and the financial return to creditors – our proposals are structured with that in mind. Ask to see one of our case study packs to see some of the possibilities available.

  • How are the trustee’s fees paid?

Our costs and fees are deducted from the money we accumulate in your Trust Deed fund, and are subject to the agreement of your creditors. We will not charge you for your initial consultation with us. We operate as an independent firm with one of the lowest Insolvency Practitioner cost structures – this gives us great flexibility within our Trust Deed proposals to ensure that an acceptable return is made to creditors.

If WB Debt Care do not think a Trust Deed is in your best interest, we will advise you on another debt insolvency option.


*A Trust Deed typically lasts for 48 months however depending on your circumstances this could be longer.