Creating a Protected Trust Deed

A bit about Protected Trust Deeds and how to qualify for one. 

A Protected Trust Deed is a legally binding agreement between you and your creditors. You make regular payments for a fixed time, after which balances remaining are considered satisfied (written off). CAP can check if this is a suitable option for you.

Please note, this option is only available to those living in Scotland.

To qualify for a Protected Trust Deed, you must apply through an approved money adviser (such as CAP). You must also have at least £5,000 of debt which you are unable to repay, (a) beyond a reasonable budget and (b) within a reasonable time period (a Trust Deed runs for a minimum of four years).

What is a Protected Trust Deed?

A Protected Trust Deed is a voluntary arrangement through which you make regular payments towards your debts for a number of years. At the end of the agreed time frame, the rest of your debt is considered written off, as long as you’ve provided information and updates as needed, made payments as required and generally co-operated.

This is a legally binding agreement administered by a Trustee who is a qualified Insolvency Practitioner. A Protected Trust Deed also requires you to transfer any property to the Trustee, for the benefit of your creditors. The value of this will be assessed at the start and end of the agreement.

If a Protected Trust Deed is the best option for you, we’ll advise you on your next steps.

Go back to other potential routes out of debt