What is a Protected Trust Deed?

A Protected Trust Deed (PTD) is a formal fixed term debt solution for people living in Scotland that acts as an alternative debt solution to bankruptcy.

How Does It Work?

A PTD removes the legal obligation to maintain contractual payments to your existing unsecured debts, by replacing them with a single payment based on affordability.

The new payments are paid for a pre-agreed fixed term of, usually, 48 months. Payments are made to a Trustee, the name of the official who administers the PTD arrangement. Their job is to make sure all parties adhere to the PTD's terms and conditions.

Whilst the PTD is in force, all named unsecured creditors forfeit the right to take legal action for the recovery of the debt and they are also legally obliged to stop interest charges or late payments, fines or penalties.

When the fixed term has completed successfully, the arrangement is considered satisfied and all outstanding balances left unpaid by the monthly contributions are legally written-off, leaving the applicant debt free

Qualifying criteria

In order to qualify for a PTD you must be insolvent. This means that your assets must have a lower value than your liabilities.

There is a minimum debt level requirement of £5,000 which should be owed to 2 or more different creditors

A PTD is available to all Scottish residents, including homeowners, lodgers or tenants, and people living with family.

Your assets

Under the terms of the arrangement, ownership of any assets, including equity in your property, must be transferred to the Trustee for evaluation.

You will be given the opportunity to buy the Trustee's interest in any assets you transfer, by using 3rd party money or possibly by extending the duration of your arrangement. But if no agreement can be found, the Trustee has the power to sell the assets for the benefit of your creditors.

Ownership of a vehicle with a value less than £4,000 is normally agreeable, but vehicles with a value greater than this might cause issues.

Any other none essential assets such as second homes, or monetary investments would also be taken into account as part of the arrangement.


As part of the initial set-up process, the Trustee will advertise the Trust Deed as one of the legal requirements of the process.

This notification gives creditors a defined period of 5 weeks within which to register their rejection of the deed.

Each creditor has the same chance to voice their disapproval, although the strength of the rejection will be proportionate with the percentage debt that a creditor is owed.

For the Trust Deed to reach 'Protected' status, and therefore become legally binding on all parties, there must be no more than 33% of creditors, in debt value terms, that reject the proposed Trust Deed. Any creditor that doesn't vote will be deemed to have accepted it.

Alternatively, if more than half the actual number of creditors reject the Trust Deed, then it will also fail to become protected.

In reality, very few Trust Deeds fail to reach Protected status, as creditors recognise that a PTD generally offers a better return than bankruptcy.

Apply For A Protected Trust Deed

If you would like to discuss the PTD solution with a professional adviser, call our helpline on 0800 088 7502.

Alternatively, complete the form below and one of advisers will call you at your preferred time.

Apply Now

Key Information
  • We only use your personal data for the purpose for which you provided it.
  • We only share select data with external parties where it is necessary in relation to the services that you have requested we carry out on your behalf, and we'll always ask for your consent beforehand, or if we are required to do so by law.
  • You can always get in touch to ask us what personal data we hold and to correct and update your data if anything changes. For an overview of your rights check out our Privacy Policy.
  • By checking the "Agreement and Consent" box you agree and give your consent for us to use your information for the purpose described.

We use cookies to ensure that we give you the best experience on our website. You can view what cookies we use and change your cookie settings at any time by following the instructions here.
We will assume based on your 'implied consent' that if you continue to use our website without changing your settings you are happy for us to use cookies.