Protected Trust Deed

The Trust Deed has been used by 1000’s of Scottish residents as a way to get out of debts by paying a manageable amount each month over a fixed term - typically 4 years.

One of the important aspects of a Trust Deed is ensuring it reaches “protected” status. When you first enter your Trust Deed there is a 5 week period where your creditors have the opportunity to object, after this point the Trust Deed will become protected and all of your creditors will have no legal right to contact you or try and reclaim back the full amount of money that you owe.

Before this you will be added to the Register of Insolvencies which is a publicly accessible account. Initially this will be used to alert your creditors of your intentions to go into a Protected Trust Deed and you will be removed from this register a year after you have been discharged from your Trust Deed.

To ensure your Trust Deed becomes protected you should make sure that your Trustee is proposing a fair dividend to creditors that will be more likely to be accepted. If the Trust Deed is unlikely to become protected you should look at alternative routes out of debt because an unprotected Trust Deed does not offer the same benefits and creditors would still be able to chase you for the full amount of debt.