Protected Trust Deeds

A trust deed is only available for residents in Scotland and is a legally binding agreement between your customer and their creditors that rearranges their debt repayments and enables them to pay back only what they can afford. The agreement will generally be for three years. What ever remains of the debt after that is cancelled.

This is often a good solution if your customer is having difficulty paying unsecured debts. If they are in this situation there are a number of other possibilities, but this arrangement is the only one which protects them from creditors and stops further interest payments. A protected trust deed is more flexible and more affordable. It will help them to avoid sequestration, or what is called bankruptcy in England.

The minimum criteria we would consider for a Protected Trust is as follows:

• Your customer must have three or more creditors
• They must be able to provide evidence that they are struggling with payments
• They must have more than £12,000 of unsecured debt
• Proof of income must be provided
• Proof of UK citizenship - scottish resident for more than 6 months