Debt types

Which debts can a trust deed include?

Check how a Scottish trust deed treats credit cards, loans, arrears, secured debts and excluded liabilities, and why new debts are different.

Updated · 3 min read · Source-led information

Start with the whole debt list

Give the adviser every liability, even if you believe it cannot be included. The purpose is to work out both what the arrangement can address and what you will still need to pay.

For each debt, note the creditor, balance, account reference, whether another person is liable and whether it is secured on an asset. Keep recent statements or letters where possible.

Common unsecured debts

Scottish Government guidance lists borrowing such as credit cards, personal loans, overdrafts, store cards, payday loans and buy-now-pay-later balances. Certain arrears, including council tax, utilities and rent, can also be relevant.

The name of the lender is not enough to classify a debt. Car borrowing, for example, can be an unsecured loan or finance linked to a vehicle. Show the agreement rather than assuming both are treated alike.

Debts that are not written off

Important exceptions include secured debt, student loans, liabilities arising from fraud and specified court-imposed fines, penalties and compensation. Maintenance obligations also require particular advice.

New liabilities arising after the trust deed is granted are not dealt with as pre-existing trust deed debts. Keep ongoing rent, mortgage, council tax and other essential bills in the budget.

Debt or paymentWhat to ask the adviser
Credit card or personal loanIs the balance verified and the creditor correctly identified?
Mortgage or secured loanWhat rights remain over the property and what payments must continue?
Rent or utility arrearsWhat separate housing or supply consequences need urgent attention?
Student loan or court liabilityWhat remains payable outside the arrangement?
New borrowingHow will it be paid without undermining the arrangement?
Joint debtWhat liability remains for the other person?

Arrears can have consequences beyond the balance

A debt being relevant to a trust deed does not, by itself, settle every issue attached to it. For example, housing problems may need separate advice and urgent action. Bring any notice or court document to the adviser immediately.

Do not stop priority payments or ignore formal paperwork because a trust deed is being discussed.

Joint and uncertain debts

A trust deed for you does not automatically release somebody else who owes the same money. Read joint debts and partners before treating a shared balance as resolved.

If a debt is disputed, has been sold or appears more than once on your records, flag it. Do not quietly omit it or count a sold balance twice. Ask the trustee to confirm how it has been recorded and what evidence is needed.

If a balance is being pursued by a collection firm, use the Scottish collector and sheriff-officer directory to verify its identity. Our council-tax summary-warrant guide explains why existing arrears and current bills must be checked separately.

Keep a copy of the agreed position

Before signing, request a clear distinction between covered debts, excluded liabilities and ongoing household commitments. That is more useful than a broad statement that “all debts” will disappear.

Sources & further reading

Sources checked for this guide on 6 September 2026. Follow the original guidance for full detail.

Contains public sector information licensed under the Open Government Licence v3.0 where indicated by the source. No government endorsement is implied.

Keep reading

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Joint debts & your partner

Learn why a Scottish trust deed does not automatically protect a joint borrower, and what to check about shared debts, budgets and property.

Property & belongings

Your home, car & assets

Learn how a Scottish trust deed can affect home equity, joint ownership, vehicles and other assets, and what to get in writing before signing.

Completion

Completion & discharge

Understand Scottish trust deed discharge, the final payment, continuing asset administration and the records to check when your arrangement finishes.

Your next step

Understand your options.
Then decide with advice.

A trust deed is a significant commitment. Free, independent debt advice can help you compare the Scottish options.

Find free Scottish debt advice