Company Financial Solutions
- Advice for Directors & Shareholders
- Exit your business
- Restructuring your company
- Manage liabilities
Specialist Business Advice
- Restructure your business
- Ease lender pressure
- Manage cash flow
- Get back in the black
Get in touch
Dunfermline - (01383) 721421
Edinburgh - (0131) 266 5373
Office locations
Follow us on Twitter
Business Solutions - Trust Deed

A protected Trust Deed is another form of insolvency, It is a legally binding voluntary arrangement between yourself and an Insolvency Practitioner (Trustee) and last for a set period which is agreed at the outset.

An offer is put to your creditors in order for the Trust Deed to gain protected status. If the creditors accept the offer, creditors can no longer pursue you for the debts in your Trust Deed.

The Trust Deed allows you to pay something towards your debt, knowing that interest and charges are frozen. The Trustee has a duty to realise their interest in any assets and collect any disposable income which you may have, by way of a contribution.

If you have any further questions with regards trust deeds, please don't hesitate to contact us.

Who can sign it?

Anyone who is having difficulty paying their debts, and who has an income, or owns assets.


How does a Trust Deed work?

After the Trust Deed is signed, the Trustee will write to all your creditors. Unless creditors who are owed more than one third of the total debt, object (which is very rare) the Trust Deed can be protected, which will prevent them from taking any further action against you.

Any correspondence from your creditors should be passed to your Trustee to deal with. You will need to continue to pay your mortgage and any other ongoing living expenses.

You can continue to work in order to earn a living for you and your family. If your earnings are sufficient, you may have to pay a proportion of your income to your Trustee.

Until the Trust Deed is finished, you need to let your Trustee know if you move house, or your financial circumstances change.

Benefits of a Trust Deed

  • You no longer have to deal with your creditors – your Trustee does that for you.
  • If you are in financial difficulty, you can sign a Trust Deed immediately.
  • You only need to make one payment a month from your surplus income.
  • Once the Trust Deed has become protected (and the overwhelming majority do, usually a few weeks after you sign it) your creditors cannot arrest your earnings, or take any further action against you.
  • There is no need for your employers to know that you have signed a Trust Deed, unless they are creditors of yours.
  • A Trust Deed will normally only last three years and after that, your debts are effectively written off.
  • Your credit rating is not automatically affected by signing a Trust Deed.
  • There are no court proceedings involved.

Frequently Asked Questions

Q: Will my home have to be sold?
A: It is extremely unlikely that your home will be sold, unless you agree to this happening. Even if your house is worth more than your outstanding mortgage, it is usually possible to agree some other way of releasing this balance without having to sell it.

Q: What about my furniture and car?
A: You are allowed to retain all basic household items. You can keep your car if you need it for work.

Q: How much does it cost?
A: There is no initial cost. If you sign a Trust Deed, your Trustee’s fees and expenses will be paid from contributions from your income and payments for your assets. If you have insufficient income or assets it is unlikely that a Trust Deed will be possible.

Q: Can I have a bank account?
A: Yes, although the bank may insist that it does not become overdrawn.

Q: How long will it last?
A: Usually three years.

Q: Is there anything else I can or cannot do?
A: You can act as a director of a limited company if the company’s articles of association are changed.

10 Abbey Park Place, Dunfermline, KY12 7NZ T: 01383 732318 F: 01383 729865 E:
Forth House, 28 Rutland Square, Edinburgh, EH1 2BW T: 0131 603 7628    
Condies Business Recovery & Insolvency Limited is a wholly-owned subsidiary of Condies CA