How Long Does A Trust Deed Last in Scotland

How long does a Trust Deed last in Scotland

How long does a Trust Deed last in Scotland?

Trust Deeds offer a way out of unaffordable debt and the chance to rebuild your credit once the Trust Deed term has ended.

The Trust Deed is a debt solution that’s only available to residents of Scotland and typically lasts for 48 months although there are some factors that can affect the length of time that a person would be in a Trust Deed.

One of the major factors in the length of your Trust Deed is whether or not you own your own property. Many individuals have concerns that their house might have to be sold when they enter a Trust Deed, but this is not automatically true, as the outcome largely depends on the level of equity available in the property.

A popular alternative to a Protected Trust Deed in Scotland is known as the Debt Arrangement Scheme (DAS) which offers much of the same protection that a Trust Deed does, but without the ‘debt write off’ aspect. However, depending on the total debt you have, and your ability to repay – it is possible that you could repay your debt back quicker than the time it would take you to repay your debts using a Trust Deed.

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Using property as part of a Trust Deed

When considering how long does a Trust Deed last in Scotland – If your home is mortgaged, the equity figure will be the property’s value minus the amount needed to repay the mortgage. There is minimal benefit for the Trust Deed administrator to use the property as part of a settlement if the equity is minimal.

Similarly, should you decide to sell your home, you may be able to end the Trust Deed earlier than the initial 48 months if your creditors are repaid in full plus interest and all the Trust Deed costs have been covered.

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Where a Trust Teed lasts longer than four years

A Trust Deed can last longer than the standard term of 48 months in certain circumstances:

  • If the Trustee negotiates low monthly payments in comparison with your overall debt, it may then be necessary to extend the Trust Deed term so that creditors will be more likely to approve the arrangement.
  • Some other Trust Deed companies charge excessive fees when arranging Trust Deeds, which results in a longer-term than forty-eight months.
  • If you were to inherit money or receive a windfall during the term of your Trust Deed, it’s likely that the Trustee will either increase your repayments or extend the Trust Deed term to provide your creditors with a higher return.
  • There is also a possibility that your personal circumstances could change during the initial 48-month term. Redundancy, or being unable to work due to ill health is two examples. In these cases, your Trustee may allow you to take a payment ‘holiday’ but extend the term at the end of the Trust Deed.

It’s important to take care when approaching Trust Deed companies to ensure they are reputable – in particular, be wary of excessive Trust Deed fees that might result in a needlessly extended term. Trust Deed Scotland has gathered over 9,000 five star Trust Deed reviews on Trustpilot. A signal that we are a Trust Deed provider that can be trusted to give you the correct advice.

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What happens at the end of a Protected Trust Deed?


At the end of your Trust Deed term, any debts remaining are written off, and your details are removed from the Trust Deed register within three months. You’ll also receive a certificate of completion from your Trustee to confirm that you’ve met your obligations.

Where your credit file is concerned, it typically will be amended to show that the Trust Deed has been successfully completed. It will be difficult to obtain credit or other borrowing for several years after the Trust Deed.

Approximately how long after a Trust Deed could you get a mortgage?

This largely depends on the lender, but it’s likely that you’ll pay a higher interest rate than a ‘standard’ mortgage if you’re successful with an application.

Trust Deed Scotland® has extensive experience of negotiating trust deeds on behalf of our clients and can provide reliable and comprehensive trust deed information. The length of a trust deed is an important aspect of the arrangement, as it determines when you can start to rebuild your financial life.

Call one of our debt advice experts to find out more about your options.

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Is a Trust Deed a good idea?

Trust Deeds can be a valuable aid to help you manage unaffordable debts and look forward to a lift after debt. However, they are not right for everybody and there may be more suitable debt management solutions for you.

You can call us on 0141 221 0999 for confidential advice tailored to your needs. Our non-judgemental and experienced debt advisers have helped over 25,000 people and that advice includes all other debt management techniques in Scotland

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Trust Deed alternatives?

There are alternatives such as the Debt Arrangement Scheme. Minimal Asset Process and Sequestration. The solutions offered to you will depend on your affordability and your situation. Every person’s situation is unique and therefore the options open to them will vary from case to case.  You may find that when you ask the question of how long a Trust Deed lasts in Scotland, how long it will take you to become debt-free if you pursued these other options.

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Where else can I get money advice in Scotland?

To 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.