# What is a protected trust deed in Scotland?

> Quick answer · Last updated 4 July 2026

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## In short

A voluntary Scottish insolvency agreement where you pay an insolvency practitioner who distributes to creditors. If enough creditors agree, it becomes protected and binds all creditors — an alternative to sequestration when you have regular income.

Failure to maintain payments can lead to sequestration.

Recorded on Accountant in Bankruptcy registers — affects credit for six years.

Get free advice from Citizens Advice Scotland before signing.

## Related

- [Sequestration explained](https://moneyguide.org.uk/debt-help/scotland-sequestration-explained/)
- [Debt health check](https://moneyguide.org.uk/tools/debt-health-check/)

## Primary source

aib.gov.uk/

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.