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{{Use British English|date=July 2014}}
A '''protected trust deed''', overseen by the [[Accountant in Bankruptcy]], is a voluntary but formal arrangement that is used by [[Scotland|Scottish]] residents where a debtor (who can be a natural person or partnership) grants a ''trust deed'' in
This can be a way for people to deal with [[debt]] problems by protecting the debtor from the legal enforcement of debts which are included in the trust deed, but only once it has become protected. It will not reverse any action that has been taken prior to the trust deed, such as earning or bank arrestments, although the trustee may negotiate the lifting of any arrestment. Many people who enter trust deeds are able to keep their homes,
==Benefits==
The arrangement is likely to lessen issues from creditors while all the associated interest and charges from unsecured debts (in the trust deed) are frozen (unless the debtor becomes able to pay interest prior to discharge).<ref>{{cite web|title=Scottish Government to improve Protected Trust Deeds scheme that helps people deal with debt|date=18 May 2012 |url=http://www.dailyrecord.co.uk/news/business-consumer/scottish-government-to-improve-protected-trust-878222|publisher=Daily Record|accessdate=15 December 2013}}</ref> After a minimum of
==Negatives==
The main disadvantage of a trust deed is that existing enforcement action, such as earning and bank arrestments may continue to be effective and
The trust deed does not stop a person from being self-employed. While in the protected trust deed, a person may not incur debt of more than £500.{{Citation needed|date=December 2015}} A common misconception is that credit can continue to be used while in a trust deed, however, this could result in [[criminal charges]].<ref name="debtors guide" /> When entering a trust deed a [[default (finance)|default]] will be placed on the debtor's credit file which will last for six years. Some people are unable to sign a trust deed because of their contract of employment states they cannot enter an insolvency solution. All protected trust deeds that fall under the Court of Session and within the territorial jurisdiction of Scotland are advertised as a public record in the ''AiB Register''. Heavy penalties can accrue for missing a payment (or, depending upon circumstances and the view of the trustee, no penalties at all). Taking out future debts becomes difficult.<ref>{{cite web|title=Changes to protected trust deeds|url=http://news.scotland.gov.uk/News/Changes-to-protected-trust-deeds-391.aspx|publisher=The Scottish Government News|accessdate=15 December 2013|archive-url=https://web.archive.org/web/20131215095516/http://news.scotland.gov.uk/News/Changes-to-protected-trust-deeds-391.aspx|archive-date=15 December 2013|url-status=dead}}</ref>
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Where, however, you experience a change in circumstances during your trust deed, such as unemployment, the trustee should review your finances to assess what is an appropriate level of contribution. This may mean you will only have to pay a reduced contribution or no contribution. Likewise, if during a trust deed your circumstances improve, one may be required to pay an increased monthly contribution.
Where one's circumstance change for the worse and you cannot maintain your level of contribution, although one may be allowed to pay a reduced contribution or no contribution you will still need to make arrangements to
Where a trustee refuses to discharge the debtor at the end of the trust deed for failing to cooperate with the trustee, it may still be possible for the debtor to appeal to the sheriff for a discharge, especially where it can be shown they either didn't refuse to cooperate or couldn't reasonably be expected to.{{Citation needed|date=July 2014}}
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==External links==
* [http://www.scotland.gov.uk/Topics/Government/public-bodies/government-scotland Official website of Executive Agency of the Scottish Government] {{Webarchive|url=https://web.archive.org/web/20140918123430/http://www.scotland.gov.uk/Topics/Government/public-bodies/government-scotland |date=18 September 2014 }}
* [http://www.aib.gov.uk/ The Accountant in Bankruptcy, the Scottish Government Agency responsible for supervising Protected Trust Deeds]
* [https://www.dasscotland.co.uk/ Official Debt Arrangement Scheme website]
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