This is a formal arrangement in which your estate is transferred to a trustee to pay your debts. Trust deeds last a minimum of 4 years and are generally contribution-based. In addition to equity, other assets belonging to you, such as furniture, could also be liquidated to help make contributions. A minimum dividend of 10p per £1 to creditors is required in a trust deed. If this can’t be achieved through 4 years of contributions alone, an increased term or the inclusion of your assets is usually required.

Pros & Cons of a Protected Trust Deed


  • Have a fixed term, usually 4 years
  • Write off all your remaining unsecured debts that were included in the trust deed, at the end of the term
  • All Interest and charges are stopped
  • Stop creditors from calling and sending letters to you
  • Prevent you from being made bankrupt / sequestration

Things to consider

  • Your credit rating will be affected
  • Must declare full financial details including assets and liabilities, you will need to release any equity you may hold in property
  • Payments are fixed and must be maintained
  • Trust deed will be advertised on the register of insolvencies 2 years after the date of discharge
  • Defaults result in Sequestration

To find out more, simply call us today on our free phone number 0121 325 3800 or fill in the Call back form and we’ll call you back.


Fee are payable with a trust deed solution. Back2credit will pass you through to one of trusted partner companies and we will be paid a fee should you take up a trust deed solution with them.

Is a Protected Trust Deed right for you?