Debt Help Scotland
We’re here to advise Scottish residents on what options are available and we’re committed to implementing their solution on their behalf.Check If You Qualify
We’re No.1 In Scotland
Trust Deed Scotland® have been helping people in Scotland since 2009. In that time, we’ve helped over 25,000 people realise their dream of a life after debt.
We know it’s not easy to ask for debt help in Scotland and that it can be difficult asking for debt advice in Scotland when there are ads all over Google and social media which appear too good to be true.
But we also understand the stigma attached to having debt and how difficult people find it to ask for help with their debts. That’s why we focus so much of our attention on compliance and training, and only employing the right type of advisor that not only have the correct qualifications but have excellent listening skills.
There’s no need to feel judged. There are many reasons why people fall into unaffordable debts, and that includes losing their job, suffering a bereavement in the family, or simply overcommitting.
Understand your options is the first step to changing your life for the better.
No. The options that you have for dealing with your debts depends on what monies you have to repay your debt, how much debt you have and other factors including your assets and your lifestyle.
Trust Deed Scotland® do not charge for giving initial debt advice, and in fact, most commercial debt companies will not charge you for debt advice either. However, there are some considerations you should have when asking for help with your debts.
Regulated Debt Advice – Are you speaking to someone who is correctly authorised to give advice. Is this company suitable qualified?
Call Centres – We don’t operate call centres. Our advisers are based in Scotland and are experienced in Scottish debt solutions. Can you say the same for an individual who has cold-called you?
In-House Team – Are your details safe? There are a growing number of companies who will pass you from company to company. This may not always be in your best interest.
No Setup Fees – Are there hidden setup fees for implementing a debt solution?
Reviews – We’ve received thousands of customer debt advice reviews and in their own words, you can find out more about us and our work over the years. Find out more about the company that’s providing help with debts and ask them for their reviews.
Registered debt charities such as Stepchange and Citizens Advice Scotland are completely free, and impartial.
Firstly, if you’re looking for help with debts, we’re pleased that you’ve reached the right place for debt help in Scotland as we’re the no.1 debt advice company in Scotland, based on the number of reviews we’ve received in the debt relief category in Trustpilot.
You can find out more about managing your money and getting free advice, visit Money Helper, an independent service set up to help people manage their money.
When researching debt help in Scotland, consider if you’ve been called out of the blue. Cold callers or those who send unsolicited text messages very rarely offer legitimate debt advice.
You can also download our free Scottish debt help guide for more information.
Recently Google restricted misleading debt service adverts on their platform – A move which was championed by Trust Deed Scotland, however, there are still a number of these in circulation.
Likewise, be cautious about ads that you see on social media where a number of unregulated ‘lead generation’ firms offer bogus debt advice in exchange for royalties earned by referral.
Trust Deed Questions
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What are Trust Deeds?
A Trust Deed in Scotland is a legally binding, voluntary agreement between you and your creditors to repay your debts at an affordable level, for a minimum period of 48 months.
Managed and administered only by a Trustee, at the end of the term, any unsecured debts left will be written off – allowing you to enjoy life after debt.
In order to qualify for a Trust Deed in Scotland, you will have at least £5,000 of unsecured debt.
To find out if a Trust Deed is right for you, call Trust Deed Scotland today and one of our experienced debt advisers will be able to give you tailored advice that allows you to make an informed decision on whether applying for any formal debt solution is right for you.
We’ll be able to tell you what a Trust Deed is and the pros, cons, and alternatives Scottish debt solutions such as the Debt Arrangement Scheme.
Trust Deeds in Scotland are only available to residents who have lived in Scotland for at least six months before they apply. You would typically have at least £5,000 of unsecured debts to qualify.
This may include example unsecured debts such as credit card debts, bank overdrafts, and unsecured personal loans.
If you are based in England, Wales or Northern Ireland and have not lived in Scotland in the last 12 months, then other debt solutions exist such as an IVA or a Debt Relief Order which may be more suitable for you as those debt solutions are only available for residents of those countries.
A Trust Deed is an effective statutory debt solution for residents of Scotland who have unaffordable debts.
If you qualify for a Trust Deed, you will pay a regular, affordable amount towards your debts and any debt left after the fixed term has ended will be written off.
The standard length for a Trust Deed term is 4 years, however, Trust Deeds may not be the best solution for everyone. There are other alternative ways of resolving personal debt issues in Scotland including the Debt Arrangement Scheme (DAS).
If you want to learn more about whether a Trust Deed is a good idea, call Trust Deed Scotland on 0141 221 0999 for tailored debt advice today.
Your Trust Deed monthly payments are calculated using your disposable income. Your disposable income is a figure based on a deduction of your essential living costs and offsetting this against your income. The amount left over is the amount of money that you have left to pay your creditors.
When you apply for a Trust Deed in Scotland or Debt Payment Programme, your essential living costs include your priority debts such as your mortgage, or rent commitments and other priorities such as utility bills and council tax.
Allowances are given for childcare, travel expenses, car finance and other essential expenditures are included such as food and even lifestyle costs such as haircuts and hobbies.
Entering into Trust Deeds or any other formal debt solution means that your monthly outgoings caused by unaffordable debt are significantly reduced, your new Trust Deed monthly payments are calculated fairly, alleviating the stress caused by debt.
Trust Deeds are a form of personal insolvency in Scotland. They were introduced as a formal debt management solution for Scottish residents and have been revised a number of times since they were first introduced in Scotland.
Every year, thousands of people use Trust Deeds to get themselves out of debt alongside other formal debt solutions known as the Debt Arrangement Scheme and our equivalent of bankruptcy, known as Sequestration.
In order to qualify, your unsecured debts need to outweigh the value of your assets, such as a house or vehicle(s) and you would typically owe a minimum of £5,000. While this is the minimum, there is no recognised maximum amount with some Trust Deeds becoming put in place with over £40,000 of unsecured debts.
Unsecured debts typically include companies that you owe money to such as credit card debts, personal loans and store cards.
When people think of insolvency, bankruptcy or sequestration there is sometimes a stigma attached to these words which can deter an individual from seeking help with debt in Scotland. However, the reality is that many more people every year are using Trust Deeds and the alternative Scottish debt solutions to get their finances back to a manageable level
We have 3,000 debt advice reviews, and this can be a good starting point to find out how other Trust Deed Scotland clients found the process in their own words, which helps to shows that Trust Deeds are an insolvency product which not only helps people with their debt but furthermore allows them to successfully get their lives back on track.
In Scotland, Trust Deeds are a valuable Government created debt relief tool that offers a way to manage your unaffordable debt.
You can reduce your monthly debt payments down to an affordable level and become debt free in as little as 48 months. You must have a minimum of £5,000 of unsecured debt to qualify, but you can apply for a Trust Deed if you have over £50,000 of unsecured debt also.
If you qualify, a Trust Deed is right for you depending on your personal circumstances and ultimately you should be given qualified debt advice to explain to you the advantages of Trust Deeds and the disadvantages of Trust Deeds and there are alternative debt solutions in Scotland that may be more suitable for you such as the Debt Arrangement Scheme.
You should never feel pushed into taking a Trust Deed, or indeed any other type of debt management product including debt consolidation loans.
When asking yourself the question Is a Trust Deed right for me, only you can make that decision after receiving balanced and transparent debt advice from an FCA authorised company. Call us on 0141 221 0999 for free confidential help, or try our Trust Deed Wizard® tool now.
IVAs, also known as Individual Voluntary Arrangements are the English, Welsh and Northern Irish equivalent of Trust Deeds in Scotland but an IVA is not exactly the same as a Trust Deed.
The length of the process is the main difference, with a Trust Deed typically lasting 4 years and an IVA lasting 5 years. Sometimes you may read about a Scottish IVA, but this is a term generally used to describe a Trust Deed.
Another difference is the amount of debt that can be included with a Trust Deed, you would typically have £5,000 of unsecured debt, and with an IVA, you can apply for an IVA with £6,000 of unsecured debt.
While an IVA may not technically be the same as a Trust Deed, there are other similarities and differences between IVAs and Trust Deeds. There are other solutions in Scotland that vary from the rest of the UK solutions including:
the Debt Arrangement Scheme (Scotland) – DMP: Debt Management Programme (England, Wales & Northern Ireland)
Minimal Asset Process (Scotland) – DRO: Debt Relief Order (England, Wales & Northern Ireland)
Sequestration (Scotland) – Bankruptcy (England, Wales & Northern Ireland)
A key difference between the Debt Arrangement Scheme and a Debt Management Programme is that DAS allows interest and charges to be legally frozen and the DMP is a voluntary agreement between an individual and their creditors. It’s another government-created, formal solution only available to residents in Scotland, and there are plans to create a similar agreement for English, Welsh and Northern Irish residents in due course.
When your agreed Trust Deed term has been complete, your Trustee will issue you with a letter of discharge and you will then be formally discharged from your Trust Deed.
Trust Deeds typically lasts for 48 months but it may be extended by a year if you want to protect your assets such as your home and car.
When you are discharged from a Protected Trust Deed, you will also be discharged from any outstanding debts which were due at the date you signed your Trust Deed. This means that your creditors are no longer allowed to pursue money that was owed to them when you signed the Trust Deed. Any unsecured debt will be formally written off.
As well as receiving the letter of discharge after the Trust Deed term has been complete, a copy of the letter will go to the Accountant in Bankruptcy and the Register of Insolvencies will record your Trust Deed discharge.
Not that the formalities are taken care of, you are officially debt free and able to enjoy Life After Debt.
Should you wish to do so, now that the Trust Deed arrangement has been complete; you can begin to apply for new credit facilities and repair your credit rating.
Debt Arrangement Scheme Questions
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Length – Trust Deeds last for 4 years. After this time, any remaining unaffordable debt is paid off. With the Debt Arrangement Scheme, they last until all your debt is repaid, this can be up to 12 years.
Amount of debt – to qualify for Scottish Trust Deeds, you must owe at least £5,000 of unsecured debt. For the Debt Arrangement Scheme in Scotland, there is no minimum debt level.
Assets – A Debt Arrangement Scheme does not involve any assets.
There are other differences and alternative Scottish debt solutions, you should always get debt advice tailored to your own circumstances, as all cases are unique depending on your situation and affordability.
You are eligible for a DAS ( Debt Arrangement Scheme ) if you are a resident of Scotland and also have money left over at the end of each month (after you’ve paid your household costs, like rent/mortgage/accommodation, food shopping, and utility bills) and you can clear your debts in a reasonable amount of time.
We will work with you to find out if DAS is the best debt solution for you, based on your situation.
A Debt Arrangement Scheme can include most unsecured debts, including:
✓ Credit Cards ✓ Store Cards ✓ Personal Loans ✓ Overdrafts ✓ Payday Loans ✓ Council Tax Arrears ✓ Utility Bill Arrears ✓ Shopping Catalogues ✓ Credit Unions ✓ HMRC
The following secured debts but only the arrears – this is optional:
✓ Mortgage Arrears, which are missed mortgage payments ✓ Rent Arrears, which are missed rent payments ✓ Car Finance Arrears, which are missed payments on your car, such as with an HP agreement
The following cannot be included in a DAS: Student Loans. Court Fines. CSA / Child Maintenance Arrears
Find out more about Trust Deeds too as there variations in the types of debt that can be included in a DAS.
For a business Debt Arrangement Scheme, you can include debts arrears from:
✓ Business rates, The following HMRC debts: ✓ PAYE ✓ VAT ✓ National Insurance ✓ Self Assessment Income Tax ✓ Rent ✓ Utilities ✓ Trade Suppliers
As well as a Business DAS, you may qualify for other forms of self-employed debt help.
How long does a DAS take to setup? The Debt Arrangement Scheme can take 5–6 weeks to set up. DAS is not insolvency, it is the only statutory debt management plan in the UK, however there are some procedures required. These include requesting up to date balances from creditors, preparing a proposal which is sent to creditors, and dealing with potential objections.
Using our Trust Deed Wizard® tool helps to speed up those administration processes and having an in-house team that handles the Debt Arrangement Scheme from initial enquiry, to DAS application and implementation helps to secure a Debt Arrangement Scheme quicker than most other approved DAS Money Advisers.
For an individual, a Debt Arrangement Scheme in Scotland can last for a ‘reasonable’ length of time with no official minimum or maximum length.
It is unusual for the Debt Payment Programme (DPP) to last longer than 10 years, and there may be more suitable solutions for you such as Trust Deeds.
For businesses, a business Debt Arrangement Scheme may last for a maximum of 5 years.
When your Debt Payment Programme is approved, you are placed on the DAS register. This is coordinated and managed by the DAS administrator and is available to potential lenders who you may be looking to borrow from.
Credit rating agencies use the DAS Scotland register, besides other insolvency registers to add information on to your credit history, which then reports your credit score.
Therefore, your DAS is likely to negatively impact your ability to take out further credit. Like all other formal insolvency solutions in Scotland, the presence of the Debt Arrangement Scheme on your credit report will last for a minimum of 6 years.
However, it is also worth noting that while the Debt Arrangement Scheme can last a longer period of time as repayments can continue to up to approximately 10 years, some alternative solutions, such as Trust Deeds, will end typically after only 48 months.
While your credit score may be important for you later in life, if you’ve been missing payments and been served a default notice on those debts, your credit score is highly likely to have already been severely impacted.
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There is a charge of £150 to go through the Full Administration Sequestration process in Scotland. You might be able to pay this in instalments and if you are in receipt of certain prescribed social security benefits (e.g. Universal Credits, Child or Working Tax Credits) or you are assessed as having no surplus income then there is no application fee payable.
The Minimal Asset Process route to Sequestration has no fees at all.
A Trustee’s fees and costs are met from the funds received into the bankruptcy through the realisation of assets and your monthly income contribution; there are no payments due by you over and above the agreed contributions from your income and/or assets.
For further information on all formal debt solutions fees in Scotland, you can call us on 0141 221 0999.
It is possible that being sequestrated could affect your existing employment and prospects for future employment.
If you are in any doubt then you should review your employment contract and/or speak confidentially to your HR department.
If you are working in the financial services industry, police, armed forces, prison service, licensed HGV driver, Chartered Accountant or are a member of any recognised professional body then you should take further advice, this will be discussed by your adviser prior to you making an application for bankruptcy. This list of affected jobs/careers is not exhaustive.
If you’re worried about whether Sequestration would affect your job call us on 0141 221 0999, find out more about all debt solutions available in Scotland.
Debt Advice Questions
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A secured debt is any debt that is secured against an item. The company lending you the money will use your asset as security if you can’t repay your loan, which means your lender has the right to repossess your home or car (whatever asset was used to secure the loan.)
Unsecured debt is when you borrow money from a lender and agree to make regular payments until it’s paid. This type of debt, usually borrowed as a loan, isn’t secured on any assets and so the interest rates tend to be higher.
When it comes to repaying debts, many unsecured loan debts can be included in either a Trust Deed or DAS, however, there are some considerations.
Student loan – Unsecured debt but can’t be included in a Trust Deed or DAS.
Guarantor loan – Unsecured debt, can be included in a Trust Deed or DAS but will mean that the lender will almost certainly pursue the person who acted as a guarantor on your behalf for repayment of the debt.
When you enter into a Protected Trust Deed (or DAS) your future interest and charges will be frozen.
When you successfully complete the Trust Deed term, any remaining unsecured debt will be written off.
After entering into a Trust Deed, you’ll be paying back what you can afford to repay each month for a fixed period.
When you enter into a Debt Payment Programme under the Debt Arrangement Scheme (Scotland), you will legally freeze the interest and charges from the debts included in your DPP.
Like Trust Deeds, you will be paying back an agreed, affordable amount each month for a fixed period, and should you successfully complete the agreed DPP term, you will not need to repay interest and charges.
Persistent Debt in a term used by credit card lenders when you pay more in interest and charges on your credit card than you’ve repaid of the amount borrowed. If you’ve received a letter from your bank telling you that have a ‘persistent debt’, you may feel upset, even if you don’t think you’re ‘in debt’ at that moment.
This persistent debt calculation is based on your activity for the last 18 months. Having a ‘persistent debt’ could make it more likely that you get into difficulty with debt in the future.
Minimum payments tend to only cover the interest and charges on the debt, or at most a very small amount of the balance. By paying more each month, you could reduce your credit card balance quicker and move your account out of its persistent debt status. By doing so, you could also save yourself money because you’ll pay less in interest.
If you are worried about persistent debt, or credit card debts, get in touch with Trust Deed Scotland today on 0141 221 0999.
As with all formal debt solutions in Scotland, the main downside for you will be how it affects your credit rating.
Having a Trust Deed will affect your credit rating for six years from the date the Trust Deed begins.
When borrowing money, credit reference agencies will assess the level of risk and base their decision on your financial history. This will include any defaults, whether you’re in a Trust Deed or used any other form of debt relief tool.
However, once your Trust Deed term has been complete and you have been discharged, you can then start to rebuild your credit rating and apply for a mortgage, credit cards etc.
While in a Trust Deed, you will make reduced monthly payments to your creditors, during which time you can get on with your life.
Before you commit to any Scottish debt solution, you would have a detailed call with an experienced debt advisor and the benefits and risks would be fully explained in the context of your own personal circumstances.
Every case is different to the next and with Trust Deed Scotland, you would receive tailored debt advice on what your debt repayment options may look like.
When you need debt help in Scotland, you should feel confident that the organisation that you’re speaking to is genuine.
Trust Deed Scotland® are aware of a number of ‘clone firms’ who are using altered versions of our name such as ‘Scottish Trust Deeds’ or ‘Life After Debt‘ and other variations of our trademarked name, and campaign awareness slogans to convince people that they’re the official Trust Deed Scotland®
They’re not genuine. They’re often not even authorised by the FCA to give advice.
Once a clone firm or scam website has your data, they could:
Trust Deed Scotland® will never…
We understand the enormous stress that unaffordable debt causes people and that they simply don’t need further anxiety caused by poor, unregulated and sales-driven advice.
Find out more about Trust Deed Scotland® and here are our top ten tips to help you choose the correct firm, making sure you’re speaking to a legitimate debt advisory firm.
1️. Are they FCA regulated?
Our FCA number is 820851.
2. How many people have they helped?
We have helped over 25,000 people.
3. How many years have they been trading?
We were established in 2009.
4. Do they sell details onto other companies?
We never sell or mishandle your details, our team are based exclusively in-house.
5. Did they cold call or send unsolicited text messages?
We’re here for our clients, only when they need us.
6. Are they based in Scotland?
We are 100% owned and operated in Scotland.
7. Are they based in a call centre?
We don’t operate call centres, either here in Scotland, or overseas like some.
8. Are they trying to force people into a solution?
We explain the benefits & risks of all available solutions and let our clients make the decision in their own time.
9. What’s their creditor approval % rate?
99% of Trust Deed Scotland® clients’ proposals are approved by creditors.
10. Do they charge setup fees?
We never have and never will, charge setup fees or ask people to pay for debt advice.
This is a common question that homeowners ask when they approach us for Debt Advice, and the answer in most cases is yes.
In a Trust Deed, your mortgage and car are protected so that you would continue paying them as normal – subject to approval, and completion.
If your house or car were at risk as a result of entering into a Trust Deed, we would look at the Debt Arrangement Scheme.
The difference between a Trust Deed and a Deed of Trust is quite significant.
A Trust Deed is an alternative to bankruptcy in Scotland and involves a professional overseeing your repayment of debt over a certain amount of time to your creditors.
A Deed of Trust meanwhile, is a legal document most commonly related to the ownership of property. It also involves a Trustee who manages how property is really owned, enabling your percentage of ownership to be protected, even when you are not listed in the land registry as the owner.
For more information, we have a whole info hub article on the differences between Trust Deeds and a Deed of Trust.
Trust Deed Scotland® will undertake an assessment of your financial difficulties and provide you with tailored debt advice so that you can understand the options that are available for you.
In order for you to make an informed decision, it’s important that you receive balanced debt advice that gives you the key facts and how they may directly impact you.
There are pros and cons for all available solutions and while most formal debt solutions share common advantages and disadvantages, you should always seek advice from a suitably experienced debt adviser. Call us on 0141 221 0999.
What does life after debt look like? When we talk about life after debt, we’re referring to the period after you’ve successfully completed the solution that you have chosen to clear your debts.
You can find out more about what is life after debt which describes in greater detail what life after debt looks like for our clients and other information such as what happens when a Trust Deed arrangement is complete alongside other associated questions including how to rebuild your credit.
Low and Grow DAS is a formal debt solution introduced in January 2021 that may help Scottish residents who have experienced a loss of income due to the Coronavirus pandemic.
The solution may appeal to those who are in a position to repay their debt over a longer period of time but require a short term solution in the intermediate period before their regular income returns to normal may be eligible to apply for a Low and Grow DAS.
The benefits and risks are the same as any other debt payment programme (DPP) undertaken as part of the Debt Arrangement Scheme.
When a person repays their debts through DAS, interest and contractual charges are frozen. DAS lifts wage arrestments; stops court action including Sequestration (bankruptcy in Scotland) and requires one monthly payment that is distributed to all creditors on their behalf.
When applying for a DPP using the Low and Grow process, it is recommended that a minimum of 5% of the overall debt is paid for the duration of the discretionary condition period of lower payments, or a minimum of £35 per month, whichever is lower.