Do creditors have to agree to my Protected Trust Deed?


No, your creditors are not legally obliged to agree to your Protected Trust Deed. However this does not necessarily mean that the Protected Trust Deed status will not be granted. Protected status will only not be granted if, within 5 weeks of receiving notice of the intention to enter into a Protected Trust Deed, creditors representing a majority in number or at least 33% of the total value of the debt object in writing.

Even if your Trust Deed is not given protected status, it doesn’t necessarily mean that your Trust Deed has failed. However, it does mean that your creditors are still able to apply for your Sequestration if they wish to and any creditors that rejected your application for protected status can still legally chase you for the money owed to them. In these circumstances, Sequestration, an informal Debt Management Plan or a Debt Arrangement Scheme Payment Plan are likely to be better options for you.

Debt Advice Foundation is a registered UK charity offering free, confidential debt advice. If you need advice about Scottish Trust Deeds or would like to see if you qualify, please call the charity’s helpline to speak with a Advisor on 0800 043 40 50.