{"id":149,"date":"2026-01-15T09:13:48","date_gmt":"2026-01-15T09:13:48","guid":{"rendered":"https:\/\/mull.xthost.co.uk\/trustdeed\/?page_id=149"},"modified":"2026-02-13T09:40:00","modified_gmt":"2026-02-13T09:40:00","slug":"protected-trust-deed","status":"publish","type":"page","link":"https:\/\/mull.xthost.co.uk\/trustdeed\/debt-solutions\/protected-trust-deed\/","title":{"rendered":"Protected Trust Deed"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">A Protected Trust Deed is a formal, legally binding agreement between you and your creditors. It typically lasts four years, after which any remaining unsecured debt is written off.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is a Protected Trust Deed?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A Trust Deed is a voluntary arrangement available only in Scotland. It&#8217;s a formal agreement where you make affordable monthly payments towards your debts for a fixed period, typically four years. At the end of that period, any remaining debt included in the agreement is written off.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The &#8220;Protected&#8221; part means your creditors can&#8217;t take further action against you for the debts included in the Trust Deed &#8211; they can&#8217;t pursue you for payment, add interest, or take you to court.<\/p>\n\n\n\n<div class=\"wp-block-group highlight-section\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h3 class=\"wp-block-heading\">Key benefits<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Fixed monthly payment based on what you can afford<\/li>\n\n\n\n<li>Legal protection from creditors<\/li>\n\n\n\n<li>Interest and charges frozen<\/li>\n\n\n\n<li>Remaining debt written off after completion<\/li>\n\n\n\n<li>Usually complete within 4 years<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Am I eligible?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To qualify for a Protected Trust Deed, you generally need to meet certain criteria. While the specifics can vary, the basic requirements include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Be a Scottish resident (or have a connection to Scotland)<\/li>\n\n\n\n<li>Owe a minimum amount of unsecured debt<\/li>\n\n\n\n<li>Have some disposable income after essential expenses<\/li>\n\n\n\n<li>Be unable to repay your debts within a reasonable timeframe<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The exact thresholds and requirements can change, so it&#8217;s important to speak with a licensed Insolvency Practitioner who can assess your specific situation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How does it work?<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">1. Assessment<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A licensed Insolvency Practitioner will review your income, expenses, debts, and assets using the Common Financial Tool. This determines how much you can afford to pay each month.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Proposal<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Your Insolvency Practitioner prepares a Trust Deed proposal and sends it to your creditors. They have five weeks to respond.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Protection<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If creditors holding the majority of your debt agree (or don&#8217;t object), the Trust Deed becomes &#8220;Protected&#8221; and is registered with the Accountant in Bankruptcy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Payments<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You make agreed monthly payments to your Trustee, who distributes funds to creditors. This typically continues for four years.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Completion<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">After completing your payments, any remaining debt included in the Trust Deed is written off. You receive a discharge certificate.<\/p>\n\n\n\n<div class=\"wp-block-group highlight-section\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h4 class=\"wp-block-heading\">Important considerations<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">A Protected Trust Deed is a serious financial commitment that will affect your credit rating for six years. If you&#8217;re a homeowner, there may be implications for your property. It&#8217;s essential to get proper advice before proceeding.<\/p>\n<\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">What debts are included?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A Protected Trust Deed covers most unsecured debts, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Credit cards and store cards<\/li>\n\n\n\n<li>Personal loans and overdrafts<\/li>\n\n\n\n<li>Council tax arrears<\/li>\n\n\n\n<li>Some HMRC debts<\/li>\n\n\n\n<li>Catalogue debts<\/li>\n\n\n\n<li>Payday loans<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Secured debts (like mortgages), student loans, court fines, and child maintenance are generally not included.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Is it right for me?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A Protected Trust Deed can be a good option if you have significant unsecured debt and can afford regular payments but couldn&#8217;t realistically clear your debts within a reasonable time. However, it&#8217;s not suitable for everyone.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Other options like the Debt Arrangement Scheme (DAS) or Sequestration might be more appropriate depending on your circumstances. The best way to find out is to speak with a qualified professional who can look at your specific situation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Protected Trust Deed is a formal, legally binding agreement between you and your creditors. It typically lasts four years, after which any remaining unsecured debt is written off. What is a Protected Trust Deed? A Trust Deed is a voluntary arrangement available only in Scotland. It&#8217;s a formal agreement where you make affordable monthly [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":147,"menu_order":1,"comment_status":"closed","ping_status":"closed","template":"page-services.php","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-149","page","type-page","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/mull.xthost.co.uk\/trustdeed\/wp-json\/wp\/v2\/pages\/149","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mull.xthost.co.uk\/trustdeed\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/mull.xthost.co.uk\/trustdeed\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/mull.xthost.co.uk\/trustdeed\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mull.xthost.co.uk\/trustdeed\/wp-json\/wp\/v2\/comments?post=149"}],"version-history":[{"count":10,"href":"https:\/\/mull.xthost.co.uk\/trustdeed\/wp-json\/wp\/v2\/pages\/149\/revisions"}],"predecessor-version":[{"id":1474,"href":"https:\/\/mull.xthost.co.uk\/trustdeed\/wp-json\/wp\/v2\/pages\/149\/revisions\/1474"}],"up":[{"embeddable":true,"href":"https:\/\/mull.xthost.co.uk\/trustdeed\/wp-json\/wp\/v2\/pages\/147"}],"wp:attachment":[{"href":"https:\/\/mull.xthost.co.uk\/trustdeed\/wp-json\/wp\/v2\/media?parent=149"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}