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i Scotland only. We do not charge you for advice, but you make payments to your trustee or insolvency practitioner once your trust deed is in progress.

Trust deed

Trust deed. What is it?

A trust deed is a formal agreement between you and your creditors. You make reduced payments to your debts, based on what you can afford. It usually lasts for four years. And then the debts included are written off.

StepChange Scotland is an organisation that is trusted and authorised to help arrange trust deeds.

You cannot get a trust deed if you live in England, Wales or Northern Ireland. The individual voluntary arrangement (IVA) is similar. Please note that the benefits, risks and fees may not be the same.

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How does a trust deed work?

When you get a trust deed, a 'trustee' takes over your things of value. They may decide to sell them to repay what you owe. And you often have to pay a certain amount of your income during your trust deed. This usually lasts four years.

Your trustee must be a qualified insolvency practitioner (IP). They are regulated by law and must be members of an approved governing body.

It is not legally binding for the people you owe at this point. But if they agree to your terms they are bound by law. When this happens, it becomes a 'protected trust deed'.

Your creditors will need to agree to the trust deed before it becomes protected.

How do protected trust deeds work?

It becomes protected when the people you owe agree to your proposal.

You do not need all of them to agree. This can happen if:


  • Half of the people you owe agree, or
  • Or those who you owe at least two thirds of your debt

Some creditors will not respond. If this happens, it is seen as them approving your proposal.

Once it is protected, action to collect the debt, including chasing you for payments or starting court action must stop.

You do not pay your creditors. Instead, you pay the trustee who manages the payments for you.

Considering a trust deed?

mum at the table with bills

Considering a trust deed?

We're here to help. Free, online debt advice available now.

Get debt help

How much does a trust deed cost?

There is a fee that you will pay the trustee. There are no set fees, it is up to the trustee to decide what you should pay. Some charge an up-front fee for setting up the trust deed.

You may want to shop around and see what people are charging.

How will a trust deed affect me?

A trust deed can be a good way to have a fresh start. But it is a big step and it is important to be clear about how it works and how you can be affected. Such as:


  • You might find it harder to get credit. It will appear on your credit file for six years from the date it begins
  • If the trust deed fails, there is a risk of bankruptcy. But your trustee will help you try to avoid this
  • It can affect some jobs. So speak to your debt advisor if you are worried and check your terms
  • It will be listed on the Register of Insolvencies for five years. This is a public register
  • You will need to stick to a budget while it is running
  • You will have to pay a fee to the trustee
  • You may have to sell items of value

Considering a trust deed?

Trust deeds are a specialised area of Scottish debt advice. Make sure it is the best solution for you by using our online debt advice tool. We are here for you to help you take your next steps.