Scottish trust deed eligibility

The main eligibility checks

Scottish Government guidance describes a trust deed as an option for people living in Scotland with debts of at least £5,000, who do not rely solely on benefits and cannot repay their debts in full within four years from disposable income.

These are starting points, not approval criteria for an online quiz. An insolvency practitioner must establish the legal position and suitability for your circumstances. If you recently moved or run a business across borders, explain that at the outset.

Income and affordability

A proposed contribution needs to be based on a proper income-and-expenditure assessment. An apparently spare amount in a bank account is not the same as sustainable disposable income.

Bring evidence of housing costs, utilities, transport, childcare, disability-related costs and less frequent expenses. Explain any income that is seasonal, temporary or likely to change. Trust deed costs and payments covers the difference between an affordability assessment and fees.

A trust deed cannot obtain protected status where the expected contributions over 48 months would equal or exceed ordinary debts. A trustee applies the statutory calculation; our budget worksheet is only preparation, not that calculation.

Benefits and work

Contributions cannot be paid from social security benefits. Where benefits and earnings are mixed, a detailed assessment is necessary rather than assuming all household income can fund the arrangement. See trust deeds and benefits.

Tell the adviser if you are a company director, self-employed, in a regulated profession or subject to a contractual insolvency restriction. Do not assume employment status is irrelevant just because income is regular. Read trust deeds and employment for the questions to raise.

Existing insolvency and assets

An existing bankruptcy can prevent a trust deed while the bankruptcy trustee remains undischarged. Tell the adviser about any current or previous formal debt arrangement.

Owning a home does not automatically exclude you, but it changes the assessment. Equally, not owning a home does not automatically make a trust deed suitable. Read how property and vehicles are treated.

Prepare for an eligibility conversation

Rather than asking only “do I qualify?”, ask:

1. Which legal eligibility conditions have you checked?
2. What income is available for contributions, and what evidence supports that?
3. Could I repay in full under a Scottish repayment arrangement instead?
4. What happens to my assets and any joint debts?
5. What circumstances could make this proposal unsuitable?

You do not need to have every answer before asking for help. If balances are uncertain, say so and bring the letters you have. A free Scottish debt adviser can help build a complete picture without treating an initial estimate as a commitment.