Should I Enter Into A PTD?


A Scottish Trust Deed offers a good way for you to manage your debts and avoid filing for sequestration. When you sign u for a deed, all your debts will be consolidated into one and their interest rates will be waived. You will then have to pay back the consolidated debt in monthly instalments. The amount of instalments you will pay will vary depending on your financial situation. When your income is high, you will pay more and when it reduces, so will the payments.

How Does It Work?

An STD is created based on the amount of debt that you owe and how much you can afford over a few years. In most cases, deeds are entered for three years. However, a deed agent, also known as an Insolvency Practitioner (IP), can increase the time to four years. The more your debt is, the higher the chances of the deed being lengthened to four years.


When you enter into such an agreement, creditors will stop harassing you with phone calls. Moreover, you will not have to make payments to the different creditors. Instead, you will be making payments to the IP who will prioritise how payments will reach the creditors.

In a Scottish Trust Deed, your payments will not include any interest rates. Therefore, you will be paying back the amount you were given by creditors at their basic principle value. Since there is no interest charged on your debt, you can finish making payments faster than would be the case if you were paying the debt outside a deed.

A deed will help you to rebuild your credit score. The deed is set up by IPs working with companies that are registered members of the Scottish Insolvency Board. When you make your payments on time, your credit score will steadily improve and within a few years, you may be eligible to take credit again.

Signing up for an STD will write off 90% of your debt. This makes it easy for you to manage the amount that you owe. To qualify for one you are not required to have good credit. Moreover, you can negotiate the payments that you will make. The trust company will only require you to make payments using your disposable income. Therefore, you will still be able to afford your usual monthly expenses such as electricity, rent, and food.


STD’s come with a number of disadvantages. The biggest disadvantage is that you will be restricted on applying credit. You will need three more years after the completion of your deed to qualify for credit.

When you apply for a Scottish deed, your name will be published on the Edinburgh Gazette. Entering into a deed usually means that you are facing financial challenges and when you name is published, your social standing may be affected negatively.

If you do not honour the agreement that you make with the Trust Deed Scotland Company, your assets can be seized and you may be declared bankrupt. In addition, your creditors can take legal action to compel you to honour your payments.

A deed also affects your credit rating negatively. Your credit score will reduce when you sign for a deed. You will therefore have a task of rebuilding it. With poor credit score, you may not be allowed to make huge financial decisions without the knowledge of your trust agent. The Insolvency Practitioner will keep watch of your income and will adjust your monthly payments accordingly to reflect increase or decrease of your income.

Are You Eligible for a Scotland Deed?

Only residents of Scotland can qualify for deeds. If you live in England or Wales, you can pursue other debt management options such an IVA, which come with their own pros and cons. To enter into a deed, look for a company that has been certified by the Scottish Insolvency Board.

When you apply for a deed, the Insolvency Practitioners (IPs) will consider your financial situation and look for a relevant solution for you. When a Scotland deed has been signed, part for the payment that you will make will be used to cover the cost of the services provided by the IP.

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