Protected Trust Deed Eligibility Scotland

Am I Eligible?

Could You Qualify?

A Protected Trust Deed is specifically designed for Scottish residents. Check the criteria below to see if you might qualify.

You May Be Eligible If

  • You live in Scotland
  • You owe at least £5,000 in unsecured debt
  • You have two or more creditors
  • You have a regular income and can make monthly payments
  • You are unable to repay your debts within a reasonable time
  • You are not already subject to a Debt Arrangement Scheme

It May Not Be Suitable If

  • You live outside Scotland
  • Your total unsecured debt is under £5,000
  • You have only one creditor
  • You have no regular income at all
  • You can comfortably repay your debts within a reasonable timeframe
  • Your debts are primarily secured (e.g., mortgage arrears only)

Types of Debt That Can Be Included

The following unsecured debts can typically be included in a Protected Trust Deed:

Common

Credit Cards

All major card providers including store-affiliated cards

Common

Personal Loans

Unsecured bank loans, credit union loans, and online lenders

Common

Overdrafts

Both authorised and unauthorised bank overdrafts

Common

Payday Loans

High-cost short-term credit from payday lenders

Often included

Council Tax Arrears

Outstanding council tax from previous or current years

Often included

Utility Arrears

Gas, electricity, and water bill arrears

Often included

HMRC Debts

Income tax and National Insurance arrears - subject to agreement

Often included

Catalogue Debts

Mail order and buy-now-pay-later catalogue accounts

Not sure about a specific debt? List all your debts when you speak to a licensed Insolvency Practitioner. They will advise which can be included and structure the proposal accordingly. The initial assessment is always free of charge.

What Happens After You Apply?

1.

Initial Consultation

A free, no-obligation call with a licensed IP to review your situation. They confirm eligibility and explain all options before you commit to anything.

2.

Proposal Preparation

If you decide to proceed, your IP drafts a detailed formal proposal covering your monthly payment, assets, and how creditors will be treated. This typically takes 1-2 weeks.

3.

Creditor Notification

Your IP notifies all creditors and advertises the Trust Deed in the Edinburgh Gazette. The 5-week window opens. Refer all creditor contact to your IP during this period.

4.

Protected Status Granted

Assuming fewer than one-third of creditors by value object, the Trust Deed is granted protected status. Creditor recovery action must legally stop immediately.

Free Debt Advice - Available Now

Before making any decisions about a Protected Trust Deed, you are entitled to free, impartial debt advice from government-backed services. These services are completely free and have no obligation to use any particular product.

MoneyHelperGovernment-backed free money and debt guidance
moneyhelper.org.uk • 0800 138 7777
Citizens Advice ScotlandFree, confidential advice across Scotland
citizensadvice.org.uk/scotland
StepChange Debt CharityFree debt advice and debt management plans
stepchange.org • 0800 138 1111
National DebtlineFree advice for people in debt in Scotland
nationaldebtline.org • 0808 808 4000