Why compare before signing?
The right comparison considers repayment capacity, assets, income stability and the consequences of each route. A trust deed’s usual contribution period should not be the only deciding factor.
These are Scottish options discussed in the context of deciding whether to enter a trust deed. This page is not an eligibility assessment for any of them.
Trust deed or Debt Arrangement Scheme?
The Debt Arrangement Scheme (DAS) is a Scottish statutory repayment scheme. A debt payment programme is designed to repay debts over a reasonable period based on affordability, with legal protections.
Unlike a trust deed, DAS is not based on conveying assets to a trustee to realise them. That difference may be particularly important for a homeowner. It does not remove the need to maintain secured commitments.
A DAS-approved money adviser must assess and submit the programme. Ask how long repayment would take on realistic figures and whether that duration is reasonable.
Trust deed or sequestration?
Sequestration is bankruptcy in Scotland. It has its own eligibility rules, procedures and consequences for assets and income. The Minimal Asset Process (MAP) is a route within Scottish bankruptcy for people who meet its specific conditions.
If a trust deed contribution cannot realistically be maintained, an adviser should explain whether a bankruptcy route is relevant. Do not assume that a trust deed is always less serious or that bankruptcy always has the same outcome for everyone.
What about an informal repayment agreement?
An informal arrangement can offer flexibility, but it does not provide the same statutory protection as a protected trust deed or DAS. Creditors’ agreement and continuing cooperation matter.
If the difficulty is temporary, explain what is expected to change and when. A short-term problem and a long-term inability to repay may call for different approaches.
Compare the practical questions
| Question | Why it matters |
|---|---|
| Can I repay in full within a reasonable period? | A repayment route may be more suitable than a trust deed. |
| Can the proposed payment survive foreseeable changes? | An unaffordable commitment is not a sustainable solution. |
| What happens to my home and other assets? | Similar monthly figures can hide very different consequences. |
| What happens if I cannot continue? | Failure and variation rules differ. |
| What are the credit and public-record effects? | Every option needs its own explanation. |
| What is the total cost and expected duration? | A headline payment alone cannot answer this. |
Ask for the reason, not just the recommendation
Ask the adviser to explain why they have ruled options in or out. Keep the explanation with your notes and check anything you do not understand.
A useful next step is to find free Scottish debt advice with an open question: “Which route fits my circumstances, and why?” You do not need to decide that a trust deed is right before making that contact.
Sources & further reading
Sources checked for this guide on 6 September 2026. Follow the original guidance for full detail.
- mygov.scot: Debt Arrangement Scheme
- mygov.scot: bankruptcy in Scotland
- Citizens Advice Scotland: trust deed alternatives
Contains public sector information licensed under the Open Government Licence v3.0 where indicated by the source. No government endorsement is implied.