Trust Deeds

Trust Deed


Trust Deeds

A Trust Deed is Scotland’s version of an IVA. A Trust Deed works out a monthly repayment schedule with the aid of a Trustee based on affordability. A specific period of time will be agreed (normally four years) and at the end of this period all remaining debts are written off provided you have kept to the terms of the arrangement.

To qualify for a Trust Deed you will need to have at least £5000.00 debt and a certain amount of disposable income.

If you choose to use this service Enjay will assist you in completing the application to then be submitted to an Insolvency Practitioner who will be the Trustee. Once accepted they will confirm payment proposals and submit them to your creditors.


• Creditors will freeze all interest and charges.

• If the Trust Deed is registered as “protected”, creditors will be prevented from petitioning for the debtor’s sequestration.

• The Trustee deals with all the creditors and their queries.

• A Trust Deed is usually more flexible than sequestration. It also allows the individual to hold certain public offices, which may not be the case with sequestration.

• If you are a Company Director and own a Company you may be able to maintain both.

• The full income & expenditure taken will determine how much you can afford after your priority bills so that you only pay what you can afford. You must keep up-to-date with your bills throughout the term.

• You pay agreed regular monthly payments to the Deed at the agreed term and once completed your remaining debt will be written off.


• A minimum of half of the creditors amounting to at least two thirds of the value of the debt must agree to the proposal before it is accepted so there is no guarantee it will be approved.

• Only unsecured debts can be included in a Trust Deed. Other than secured there are other debts that cannot be included, which include fines and penalties imposed by the courts and student loans. These debts must be kept up-to-date to avoid further action.

• As you are required to declare all your assets and liabilities your assets may be transferred to the Trustee and could be sold. This can therefore put your home at risk and you may have to release equity in your property.

• Entering a Trust Deed will affect your credit rating for 6 years.

• Your Income and Expenditure will be regularly monitored and you are required to maintain this budget during the term of the Trust Deed.

• If you fail to maintain the monthly payments then the Trust Deed will fail and you will be liable to pay the remaining balance of your debt and any fees incurred. Your creditors can also apply for your sequestration.

• Details of the Protected Trust Deed will be held on a public register.

How much will it cost?

You be charged a fee by the Trustee for setting up and administrating your Trust Deed. The fee is dependent on your individual circumstances but on average the fee is around £5500.00 in total which will be taken from your monthly payment. All fees will be disclosed to you and your creditors before the Trust Deed is agreed so that all parties are aware.

For further information and advice call our team on: 0800 6127958 or 01708 854200