A protected trust deed is a legally binding arrangement in Scotland where you make reduced payments over four years. At the end of this time, your unsecured debts are usually written off.
A trust deed is a form of insolvency, so your unsecured debts need to outweigh the value of your assets, such as a house or vehicles. Unsecured debts include things like credit card debt, personal loans and store cards.
Trust deeds are only available if you live in Scotland. If you live in England, Wales or Northern Ireland, an Individual voluntary arrangement (IVA) is a similar solution, but it’s important to note that it has different benefits, risks and fees associated with it.