Skip to content
£ moneyguide
Banking

What is a protected trust deed in Scotland?

Where a link is marked *, it is a partner link — we receive commission at no extra cost to you. Links without a * earn us nothing. How we make money.

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.

Last reviewed:

Reviewed by Kaiser Khan

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.

Primary source: aib.gov.uk

Part of our Banking & current accounts

This quick answer sits inside our wider banking & current accounts hub — with sub-guides, calculators and step-by-step explainers on the same topic.

Read the full banking & current accounts guide

Related reading

More in Banking

Was this page useful?Stored locally on your device.