what is a Trust Deed

A trust deed is essentially the Scottish equivalent of an IVA.

Trust deeds work on a similar principle to IVAs in that they were implemented to provide people with large amounts of unsecured debt they couldn’t manage, with a less severe alternative to bankruptcy (or sequestration as it's known in Scotland).

The main difference between an IVA and a trust deed is the duration. In England & Wales an IVA typically runs for 5 years and in Scotland, a trust deed is usually in place for a period of 3 years.

Another key area that differs is the vote by creditors. With an IVA you need 75% by value of your creditors to agree to your proposal before it can go ahead, with a trust deed this figure is two thirds.

You must be resident in Scotland to be eligible for a trust deed; you can't apply for one if you are normally resident in England or Wales.

Discover more information about the pros and cons of Trust Deeds.

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