We are closed for the day. Book a callback below.
May not be suitable in all circumstances. Fees apply. Your credit rating may be affected.

Protected Trust Deeds in Scotland

If you are struggling with unmanageable debt, and live in Scotland, a trust deed could allow you to take back control. Find out how below.
Do I Qualify?
Scroll to learn more

How could a trust deed help you?

Frequently asked questions

A trust deed is a legally binding agreement between you and a Trustee which allows the Trustee to deal with your creditors on your behalf.  When you sign a trust deed with the assistance of Cleanslate, Lynne Flower will be appointed as your Trustee.

Your monthly income and expenditure will be worked out and you agree to pay your surplus income after living costs to your Trustee for a period of time, usually 4 years. If you own any assets of value or acquire any assets during this period these would also be realised. The Trustee collects the monthly contribution payment and the value of any assets and uses these to pay the costs of the process, including their fees. The Trustee divides the remaining money between your creditors. The amount your creditors receive is called a dividend. Your creditors are asked to agree or disagree to the proposed level of dividend at the beginning. If they agree the trust deed becomes protected and no legal action can be taken against you in relation to these debts.

Once you have made your payments and any assets have been realised, you will be discharged from your debt and any remaining debt is written off.

There are many advantages of a trust deed, a few of which are:

  • You can stop making separate payments to all your unsecured creditors and instead make one, affordable, monthly payment to your trust deed.
  • You will only pay back what you can afford.
  • We will deal with creditors on your behalf.
  • Your creditors cannot take any action against you to recover the debts once they have agreed to the trust deed and it has gained “protected status".
  • Your remaining debt will be written off upon successful conclusion of your trust deed.
  • You may be able to remain as the director of a limited Company

Your trust deed will be visible on your credit file for six years. This may impact your ability to obtain credit for a period after you have been discharged from the trust deed.

If you own your home, we will need to discuss and agree with you at the beginning how we can deal with this. Find out more in the 'Will my house be affected by a trust deed' section below.

A trust deed could be an option for you if you live in Scotland, have £5,000 or more of unsecured debt and cannot repay it in full within 4 years. You cannot sign a trust deed if you have been made bankrupt and have not yet been discharged.

A trust deed covers all your unsecured debts (such as unsecured loans, credit cards, catalogues, rent arrears, council tax arrears and utilities arrears). There are a small number of exceptions, such as student loans, court fines and debts incurred as a result of fraud or a breach of trust. If you have any debts which cannot be included in a trust deed, our advisers will make you aware of this.

All trust deeds in Scotland are recorded in the Register of Insolvencies which is free to access online. In order for someone to become aware of your trust deed they would need to actively look your name up on this register. Your trust deed will remain on the Register of Insolvencies for one year after the Trustee has been discharged, then it will no longer be visible.

Your home may be affected in a trust deed, however this is only usually likely if you have a significant amount of equity. We find people often overestimate how much equity there is in their home, meaning they wrongfully assume a trust deed won’t be for them. To make sure that we can give you clear advice, if you own a property and are considering signing a Trust Deed, we will instruct a surveyor to provide us with a professional valuation of your property. We will ask you to confirm the redemption figure for your mortgage and any other borrowing secured against the property. This means that we can confirm the exact level of equity in the property. If there is equity, there are a number of options for addressing it, and we will discuss each of these with you. We will come to a clearly defined agreement as to how that equity will be dealt with in the trust deed and will confirm this to you in writing. If your home is likely to be impacted, we will explain this in full to you before you sign anything, putting you in control of your future.

In some circumstances, it may be possible to exclude your property from a trust deed, however this requires the consent of your creditors and we will discuss with you whether this may be an option for you in your specific circumstances.

It’s our experience that cars rarely need to be sold in a trust deed. There are numerous factors that could impact this (including how the car is financed, if it’s owned outright etc.). If you have reasonable need to use a vehicle and it’s worth less than £3,000 it will be unaffected regardless. Your general household possessions will not be affected by signing a trust deed. This includes TVs, mobile phones, laptops, furniture and white goods.

All unsecured loans must be included in a trust deed, including guarantor loans. It is important to note that if you enter this type of debt solution, your guarantor will assume full liability for the loan. You may wish to discuss the position with them before taking this type of action. If your guarantor is likely to face financial difficulty as a result, they can also contact Cleanslate for confidential advice.

Being in a protected trust deed will not affect your ability to have a bank account; however, you will not be able to use an overdraft. If your current account is with a bank which is also one of your creditors, it is advisable to open a new bank account with a bank to whom you owe no money.

Your credit file will be updated to show that you have signed a trust deed and this information will remain on your file for six years. This means that you may find it difficult to get credit for a period after your trust deed is finalised.

Meet our team

Cleanslate is part of Interpath Ltd, the largest independent top-tier restructuring practice in the UK. Our people have successfully helped thousands out of debt. Meet some of the team that can help you turn your finances around.
Meet the team

Callum McGeady


Natalie Cummiskey

Assistant Manager

Hazel Cann


Grant Morrison

Assistant Manager

Gillian Ayton


It’s time for Cleanslate