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FAQS: Trust Deeds Part 2

Posted 11 November 2015

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Make sure you look at our FAQs to find all the answers you need about Trust Deeds.

Following on from yesterday, here's part two of our FAQs about Teust Deeds. If you haven't found the anser to your question in these blogs, why not have a chat with us. Just choose one of the 'contact us' options from the left of the page. Right, let's get on with it.

Q. Can I still get credit after my trust deed?

A. It will still be possible to get credit after your TD is over, however, your choices are likely to be limited. Due to the damage to your credit file, you may have to pay a higher rate of interest.

Q. Are TDs available to everyone?

A. They are only available to Scottish residents. If you live in the rest of the UK then there are other debt solutions available to you.

Q. How much debt do I need to have before I can get a TD?

A. You must have a minimum of £5,000 in unsecured debts (for example, credit cards, store-cards and loans that are not secured against your home) to qualify for a Trust Deed.

Q. Can I include secured debts on a TD?

A. No, you can’t. But, if you went on a TD your Trustee would make sure that you could afford to repay your secured debts as well as your monthly TD repayments.

Q. Will people know I’m on a TD?

A. Possibly. If you enter into a Trust Deed, it will appear on the Register of Insolvencies which is public. However, someone would have to search the register to find out.

Q. How does a TD become protected?

A. A Trust Deed is protected as long as half in number or a third in value do not object to the Trust Deed. From then until it ends, it is legally binding for all of your creditors on the TD and they wouldn’t be able to take you to court.

Q. Will I have to deal with my creditors whilst on the TD?

A. No. Your trustee will deal with all creditor contact and your creditors won’t be able to chase you for payments at all, as long as you stick to the agreement.

Q. Are there any alternatives to a Trust Deed?

A. Yes. It’s best to look into all your options, so that you agree to the correct solution for you. Debt management plans, sequestration, MAP,  debt consolidation and Debt Arrangement Schemes are other options for Scotland.

Debt management plans, IVAs, debt consolidation, bankruptcy and DROs are alternatives if you live in England or Wales.

Q. I have debts with my partner. Can we get a joint Trust Deed?

Although there is no such thing as a joint TD, if it is the best option for you both, it might be possible for you both to enter into separate TDs.

Q. Will my job be affected?

A. It depends on what you do. If you work as an accountant, solicitor, are the director of a company, a bank manager, a police officer, fireman or prison officer, then a Trust Deed may not be the right option for you but you’d need to check this with your employer. Some employers put clauses in their contracts of employment, which state that if you become insolvent, your contract will be terminated.  This is to protect you and your employer and from compromising positions.  


You should check your contract and seek professional advice to know whether a TD would impact on your job. Well, there’s certainly a lot of information to take in here! It’s so important that you give yourself lots of time to look into debt solutions before you commit to anything. There’s more detailed information about the different aspects of Trust Deeds on the rest of the site, so have a look. Don’t forget to give us a call if you have any other questions. 



by Christine Walsh

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