KPMG Personal Debt Solutions

Scottish Trust Deeds

Free, Confidential Advice

Are you Eligible?

Do you qualify for a Trust Deed? Find out below.

Do you live in Scotland?

What is your total unsecured debt?

Scottish Trust Deed

A Protected Trust Deed is a form of insolvency that is available to people living in Scotland struggling with their finances.

If you are looking to understand how a Trust Deed could work for you, our friendly advisers are here to help. When you contact us, we will take you through a simple budget to gain a full picture of your financial situation. We will then work with you to agree how much you can realistically afford to pay towards your debts.

With a Protected Trust Deed, you will only pay what you can over an agreed period of time (usually 4 years). The interest on your debt will be frozen, and when you have successfully completed a Trust Deed, the remaining balance of your unsecured debt will be written off.

We will deal with your creditors on your behalf, saving you time and taking the stress out of the situation. You will also be legally protected against creditor action.

Book a Callback

If you would like more information on Scottish Trust Deeds, book a call back with one of our advisers above, or call us on 0141 300 5656.

What are the Advantages?

There are many advantages of a Trust Deed, a few of which are:

  • You will only pay back what you can afford.
  • Your Trustee will deal with creditors on your behalf.
  • You will be protected against creditor action.
  • On successful conclusion of a Trust Deed, your remaining debt will be written off.
  • If you own assets (such as property) you agree with your Trustee in advance whether the Trust Deed affects them.
  • You may be able to remain as the director of a Limited Company, subject to the Articles of Association of the company.

What are the Disadvantages?

Your credit file will be updated to reflect that you have signed a Trust Deed and this information will remain on your credit file for six years. This means that you may find it difficult to get credit for a period after your Trust Deed is finalised.

For a Trust Deed to become protected, you must convey all your assets to your Trustee. That includes any property that you own.  In some exceptional circumstances it may be possible to exclude your property and we will give you clear advice on this when you call us.

Who Can Sign a Trust Deed?

A Trust Deed could be an option for you if you live in Scotland, have £5,000 or more of unsecured debt and cannot repay it in full within 4 years.  You cannot sign a Trust Deed if you have been sequestrated, and have not yet been discharged.

What Debts are Included?

A Trust Deed covers all your unsecured debts with just a small number of exceptions.  These include (but are not limited to) student loans, court fines and debts incurred as a result of fraud or a breach of trust.  If you have any debts which cannot be included in a Trust Deed, our advisers will make you aware of this.

Will People Find Out?

It is unlikely that people you know will find out about your Trust Deed unless you chose to tell them. While there is a publicly accessible register that holds information about people who have signed Trust Deeds, your friends and family would have to make a conscious effort to look these up to find out about your circumstances.  Your Protected Trust Deed will remain on the Register of Insolvencies for one year after the Trustee has been discharged, then it will no longer be visible.

Will my House be Affected? Can I Exclude my House?

In order for a Trust Deed to become Protected, all your assets must be conveyed to the Trustee. That includes any property that you own. 

We will establish if there is any equity in the property by instructing a qualified surveyor to carry out a professional valuation (at no cost to you). We will ask you to provide confirmation of the redemption figure for your mortgage and any other borrowing secured against the property.

If there is equity, there are a number of options for addressing it, and we will discuss each of these with you.

It is possible in certain circumstances to propose a different type of Trust Deed which excludes your home.  Both your secured and unsecured creditors would need to agree to this exclusion, and it is unlikely they will do so if there is a lot of equity in the property.

When you call our qualified advisers, we will discuss with you whether this approach is likely to be of benefit to you.

How will my Car and Possessions be Affected?

If you own your car, have a reasonable need to use it and it is worth less than £3,000, it will be unaffected by your Trust Deed. If it is worth over £3,000 it is considered an asset and will be conveyed to the Trustee. We will discuss with you the options for addressing this. 

Your general household possessions will not be affected by signing a Trust Deed. This includes TVs, mobile phones, laptops, furniture and white goods, for example.

I Have a Guarantor Loan. Can I Include This?

All unsecured loans must be included in a Trust Deed, including guarantor loans. It is important to note that if you enter into this type of debt solution, your guarantor will assume full liability for the loan. If you believe this will leave your guarantor in financial distress, they can also contact KPMG for free, confidential help.

Can I Still Have a Bank Account? Will my Credit File be Affected?

Being in a Protected Trust Deed will not affect your ability to have a bank account; however, you will not be able to use an overdraft.

Your credit file will be updated to show that you have signed a Trust Deed and this information will remain on your file for six years. This means that you may find it difficult to get credit for a period after your Trust Deed is finalised.

Contact Us Today

The Personal Debt Solutions team at KPMG are experts in all formal debt solutions, and have helped thousands break free from the cycle of debt in Scotland. If you would like more information, book a call back with one of our advisers today, or call us on 0141 300 5656.

Or, to find out more about the other formal debt solutions available, browse through our pages on the Debt Arrangement Scheme, and Bankruptcy.

Book a Callback