(Scotland only)

Protected Scottish Trust Deeds are a contractual and legal arrangement between a debtor and their creditors to repay debts at a reduced rate over a reduced period.

To qualify for Protected Scottish Trust Deeds the debtor must be “insolvent”. This generally means that the debtor’s unsecured debts outweigh their assets (often equity held in their home) and that they are unable to repay their debts when they fall due.

Protected Scottish Trust Deeds are often used to protect an individual from their creditors and the risk that they might be sequestrated (bankrupted). It can help to protect assets (such as a home).

To qualify for a Protected Scottish Trust Deed you will normally need more than £8000 of unsecured debts. You would normally need to be in a position to repay £150 per month or more towards the debts for the duration of the Protected Scottish Trust Deed (which is often three years). These figures are guidelines and every case is different. Please contact us to discuss your case as a Protected Scottish Trust Deeds may be possible in certain circumstances even if these criteria cannot be met.

Some people are able to introduce lump-sums into Protected Scottish Trust Deeds. This might be from the sale of an asset or a contribution from another person. In such cases a different type of Protected Scottish Trust Deeds might be possible whereby the lump sum serves as an alternative to making contributions over a period of years.

If you have assets they will be considered in Protected Scottish Trust Deeds. For example if there is equity in your home you may be required to release some equity during the term (for example by remortgaging) to help repay the creditors.

You will need to secure the services of a Licenced Insolvency Practitioner to work with you on your Protected Scottish Trust Deed proposal. It is their job to work with you to establish a fair level of repayment to creditors and to seek the agreement of your creditors to such an arrangement.

Generally if two thirds of your creditors agree to the proposal (or fail to object to it) the Scottish Trust Deed will become a Protected Scottish Trust Deed. This gives you protection against any further recovery activity on the debts.

Provided you meet the commitments made in your successful Protected Scottish Trust Deed proposal you will no longer be liable for any remaining debt at the end of the agreed term.

The avoidance of bankruptcy, protection of the home, and defined period of repayment are all major advantages of Protected Scottish Trust Deeds.

The selection of a good Licenced Insolvency Practitioner is vitally important. As with all businesses the quality of service varies greatly between firms. Should you wish the site support team can guide you towards an Insolvency Practitioner who specialises in cases similar to yours and who has received excellent client and professional feedback in the past.

We suggest that you visit www.trust-deed.co.uk which is connected to this website. At this site there is further information on Protected Scottish Trust Deeds and a forum where you can anonymously ask respected Protected Scottish Trust Deeds professionals any question you might have. The firms supplying the experts to this forum have received great feedback from previous clients who have gone ahead to do Protected Scottish Trust Deeds.

Anyone entering into a Protected Scottish Trust Deed should clarify carefully with the Licenced Insolvency Practitioner the implications for their home. While it appears a significant amount of your debts may be written off you may find in reality these unsecured debts are in part transferred into secured debt on your home (via an increased mortgage) which could take many extra years to repay. We suggest that you demand that the position regarding your home be put in writing to you before you sign the Scottish Trust Deed itself.

In recent years creditors have tightened the criteria they use to decide whether to support Scottish Trust Deeds. For this reason many people find they are unable to enter a Scottish Trust Deed and therefore need to look at other options.

Protected Scottish Trust Deeds also have a very significant effect on a credit record which is likely to be similar to bankruptcy. Any previous Protected Scottish Trust Deeds may also need to be declared on mortgage applications for many years after the Protected Scottish Trust Deed is completed even if it is no longer viewable on a credit record.

Like all debt solutions there are significant advantages and disadvantages associated with Protected Scottish Trust Deeds. These factors vary from person to person based upon their unique personal circumstances. Please contact us if you’d like to discuss whether a Protected Scottish Trust Deed could be the right option for you or visit www.trust-deed.co.uk to get further useful information or to ask questions.

For further details about Trust Deed fees and the work that is conducted Click Here.

Warning: If your Trust Deed fails you will remain liable for the balance of your debt and any insolvency practitioner fees and costs incurred.