Bramley Manor | Scottish Protected Trust

What is a Scottish Protected Deed?

A Protected Trust Deed, which is overseen by the Accountant in Bankruptcy, is similar to an IVA but is only available to residents of Scotland.

Any person who wants to make an application for a Protected Trust Deed must have been a resident of Scotland for at least six months before making an application.

It’s a voluntary and formal agreement between you and your creditors in which you agree to give a contribution from your income for a specified period. This is usually four years.

Like an IVA, you’ll usually need circa £6,000 of unsecured debt from two or more lenders to qualify.
Not all debts will qualify for repayment under a Protected Trust Deed, but it will always factor all debts into your overall assessment to ensure every debt is managed.

A Protected Trust Deed provides people with a way of dealing with debt problems as the debtor is protected from the legal enforcement of debts that are included in the trust deed. This is only applicable once it has become protected though, and will not reverse any action that has been taken prior to the start date.

For many debtors in Scotland, Protected Trust Deeds are a viable option as they allow people to keep their homes. The equity does normally have to be released via third party buy outs or through remortgaging, but only in extreme cases will this be achieved through the sale of the debtor’s home.

Find out more about debt solutions including:

Individual Voluntary Agreement (IVA) – an agreement with your creditors to pay all or part of your debts. This is where a person agrees to make regular payments to an Insolvency Practitioner, who then divides the money between the person’s creditors. This option gives people more control over their assets than bankruptcy, Individual Voluntary Agreement (IVA) information. <<more info>>

Debt Management Plan (DMP) – The difference between a DMP and an IVA is that with a DMP, all outstanding debt is repaid. It’s a much more informal solution and therefore, there is no guarantee that interest and charges will be frozen by creditors. It’s also true that creditors can still pursue legal action, whereas, with a legally binding IVA, no changes can be made to an approved agreement. Debt Management Plan (DMP) information. <<more info>>

Bankruptcy – Bankruptcy presents the opportunity to clear debts and go for a ‘fresh start’ but there are many consequences which must be considered before declaring bankruptcy. Citizen’s Advice covers this in more detail, including timelines, checklists, costs, and implications at, Bankruptcy information. <<more info>>

Debt Relief Order (DRO) – This presents people with a way of dealing with their debts if they can’t afford to pay them. It is usually granted for 12 months and means a person doesn’t have to pay certain types of debts during that period of time. AN authorised debt advisor, who acts as the intermediary is the only route available for people looking to obtain a DRO. Debt Relief Order (DRO) information. <<more info>>

Scottish Protected Trust Deed (TD) – A Protected Trust Deed is only available to residents of Scotland and presents an opportunity for people to remain in possession of their home (in most cases). This formal but voluntary agreement is overseen by the Accountant in Bankruptcy, Scottish Protected Trust Deed (TD) information. <<more info>>

Scottish Debt Arrangement Scheme (DAS) – This scheme was set up by the Scottish Government to allow people an opportunity to pay back their debts without the threat of court action. The DAS presents people with a manageable way of paying back their debts and is eligible for application from people with any amount of debt. Scottish Debt Arrangement Scheme (DAS) information about applying for a DAS. <<more info>>

Debt Solutions - Scottish Protected Trust Deed