What Debts Can Be Included?

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Debts That CAN Be Included

A Protected Trust Deed covers unsecured debts - debts not tied to an asset. Common examples include:

• Credit card balances
• Personal loans and bank loans
• Overdrafts
• Store cards and catalogue debts
• Payday loans
• Council tax arrears (in most cases)
• Utility bill arrears (gas, electricity, water)
• HMRC debts (income tax, National Insurance) - subject to HMRC agreement
• Private debts owed to friends or family

Debts That CANNOT Be Included

Certain debts are excluded by law and will continue regardless of your Trust Deed:

• Student loans - excluded from all personal insolvency arrangements
• Child maintenance / CSA arrears - a legal obligation that cannot be written off
• Court fines and criminal penalties - including TV licence penalties
• Confiscation orders
• Secured debts - mortgage, hire purchase agreements, logbook loans
• Debts arising from fraud - a court can exclude these
• Social fund loans (government loans)

What About Joint Debts?

If you have a debt in joint names (e.g., a joint personal loan), only your share of the debt is included in your Trust Deed. Your co-borrower remains fully liable for the entire debt and creditors can continue to pursue them for payment. They may need to seek their own debt advice.

Debts Incurred After the Trust Deed Starts

Only debts that exist at the date your Trust Deed is signed can be included. Any debts you take on after that date are excluded and remain your personal liability, even after your discharge.

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