Protected Trust Deed

Home Protected Trust Deed Protected Trust Deed (TD) Scottish Residents Only

What is a Protected Trust Deed?

A Protected Trust Deed, which is overseen by the Accountant in Bankruptcy, is similar to an IVA but is only available to residents of Scotland.

Click here for full information from the Accountancy in Bankruptcy.

Any person who wants to make an application for a Protected Trust Deed must have been a resident of Scotland for at least six months before making an application.

It’s a voluntary and formal agreement between you and your creditors in which you agree to give a contribution from your income for a specified period. This is usually four years.

Like an IVA, you’ll usually need circa £6,000 of unsecured debt from two or more lenders to qualify.

Not all debts will qualify for repayment under a Protected Trust Deed, but it will always factor all debts into your overall assessment to ensure every debt is managed.

A Protected Trust Deed provides people with a way of dealing with debt problems as the debtor is protected from the legal enforcement of debts that are included in the trust deed. This is only applicable once it has become protected though, and will not reverse any action that has been taken prior to the start date.

For many debtors in Scotland, Protected Trust Deeds are a viable option as they allow people to keep their homes. The equity does normally have to be released via third party buy outs or through remortgaging, but only in extreme cases will this be achieved through the sale of the debtor’s home.

In order for someone to enter into a Protected Trust Deed, they must:

There are certain obligations for people once they have entered into a Protected Trust Deed. These include:

There are certain obligations for people once they have entered into a Protected Trust Deed. These include:


Things to consider

One affordable monthly paymentYour information will be added to the Insolvency Register
All creditor contact will cease and be handled by your Insolvency PractitionerIf you are a homeowner and have equity in your property, you may be required to release some to your creditors
All charges and interest frozenApplying for credit cards, loans, mortgages, or other unsecured debts will be affected for the duration of your repayment
You keep control and possession of your personal assets (property, car etc.)A Trust Deed will show on your credit file for 6 years

You receive full legal protection from any further creditor action

Failure to comply may result in bankruptcy
Fixed term —you’ll have a set date when your debts will be clearedYour expenditure will be monitored and you may be asked to reduce expenses that are considered excessive
If your situation worsens, payment breaks can be provided, or the IVA may be altered to suit your new circumstances 
Debt remaining at the end of the fixed term will be written off

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