What is a Trust Deed

A trust deed is a voluntary agreement between you and the people you owe money to (also called your creditors). You agree to pay a regular amount of money towards your debts and at the end of a fixed time the rest of your debts will be written off. You could write off an amount of your debts.

A trust deed can become ‘protected’ if the majority of creditors are happy with the terms of the trust deed. This means that the trust deed is binding on all creditors and they cannot take any steps to recover the money owed to them.
A trust deed is only one of the options available to you if you have debt problems. You should get advice from a money Helper to help you decide what is the best option for you.

Click “Get started” to start your journey, one of our friendly team will then be in touch to give you all the information you need to deal with your enquiry and refer you to one of our regulated associate experts.


When a Trust Deed might be an option for you

A trust deed might be an option for you if you have:

Advantages of protected trust deeds

The advantages of protected trust deeds are:
Trust deeds are not the only option to help you sort out problems with debts. Other options include:

We may pass you onto a FCA regulated debt advice firm for a full advice call who would look into a range of options for you, May not be suitable in all circumstances fees may apply.
We are a debt help lead generation organisation & may be paid a referral fee from the FCA regulated firms.

What is a Debt Arrangement Scheme

A Debt Arrangement Scheme is a formal solution backed by the Scottish Government.

Under the scheme, you set up a Debt Repayment Plan (DPP) that consists of one affordable monthly payment. If you wish to apply for this, an official money advisor will need to apply on your behalf.

A DAS may be an option if:

  • You have a steady amount of disposable income left over each month to pay toward your debts once you have covered your necessary spending
  • You are looking to pay your debts off in full through one affordable monthly payment
  • You are worried about losing your home and assets through other solutions

Advantages of a DAS:

  • You would not be required to sell your assets to pay towards your debts
  • Creditors will freeze your interest and charges for the duration of the scheme
  • Gets you in a repayment plan, by the end of which your debts will be repaid in full
  • As a formal scheme, a DAS means that both you and your creditors will have legal protection

Disadvantages of a DAS:

  • Your plan will last as long as it takes for you to pay off your debts, which may be longer than other plans
  • You will agree to pay your debts off in full, so it’s unlikely that any will be written off for you by your creditors

What is a Sequestration

Sequestration in Scotland is a similar process to Bankruptcy.

In this scheme, your finances are controlled by a Trustee, who may sell your assets in order to pay back creditors. The fee to apply for sequestration is £150, and this is paid to the Accountant in Bankruptcy (AiB), who conducts personal bankruptcies in Scotland.

If you owe £10,000 or more, your creditors can apply for you to be made bankrupt themselves.

Sequestration may be an option for you if:

  • You have little or no means of making regular repayments to your creditors
  • You are in at least £3,000 of debt
  • You have assets that can be sold in order to cover your debts

Advantages of Sequestration

  • The process usually lasts one year, after which your debts will be written off
  • It will put an end to creditors chasing you for money
  • Most debts can be written off with sequestration. There are a few exceptions, such as debts taken out fraudulently, student loans and court fines

Disadvantages of Sequestration

  • Your assets – such as your home- may be sold in order to pay your creditors
  • Whilst the process lasts one years, the sequestration will be reflected negatively on your credit file for 6 years
  • You have to pay an application fee of £150 in full before your application can be considered

What is a Minimal Asset Process (MAP)

MAP Bankruptcy is a scheme similar to sequestration, but aimed at consumers with minimal assets and low income. If eligible, you may be able to get unaffordable debts written off.

MAP Bankruptcy may be an option for you if:

  • You have little to no disposable income once your necessary costs have been covered, or rely solely on benefits
  • You have debts totalling somewhere between £1,500 and £25,000
  • You are not a homeowner, your car is worth less than £3,000, and you have no other assets worth more than £1,000

Advantages of MAP

The fee to apply is £50, which is smaller than the alternative sequestration route
You can see your eligible debts written off once the scheme is completed
It will put a stop to creditors chasing you for the money that you owe
It lasts 6 months, as opposed to 12 months with sequestration

Disadvantages of MAP

Your application will not be considered until the fee has been paid in full
Your credit rating will be poorly impacted for up to 6 years following the commencing of the scheme
The criteria is more specific than other solutions, meaning not as many consumers will be able to qualify compared to sequestration and other solutions