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Protected Trust Deed

A Protected Trust Deed (PTD), also known as a Scottish Trust Deed, is a formal debt solution. It’s the equivalent of an Individual Voluntary Arrangement (IVA) in England, Wales and Northern Ireland. This type of debt solution is legally binding and is an alternative to insolvency for people with debts higher than £5,000.

Under one of these agreements, you commit to making monthly repayments that you can afford over a set period of time, typically four years. During this period, interest rates and charges on your debts are frozen. Once the agreed term comes to an end, any remaining debts are written off.


Sequestration is the Scottish equivalent of Bankruptcy. It involves selling any assets, including your car, house and any other valuables you may own, to offset the money you owe to creditors. It may be a suitable option for you if you don’t have other ways to repay your debts over a reasonable period of time.

To be eligible for Sequestration, you must have outstanding debts of more than £3,000. You should be sure that this is the best option for you before committing to this type of agreement. 

Debt Arrangement Scheme (DAS)

Set up by the Scottish government, the Debt Arrangement Scheme (DAS) helps you to repay your debts in a manageable way without being threatened by court action from your creditors. Under the terms of this scheme, you make one regular payment into a debt payment programme. This money is divided up between your creditors.

You can apply for the scheme with any amount of debt, and you can apply for it with your spouse, civil partner or cohabiting partner if you have joint liability for at least one outstanding debt.

Debt Management Plan (DMP)

A Debt Management Plan is an informal agreement between you and your creditors under which you pay back the money you owe through one set monthly payment. This sum is then divided between your creditors.

Most of these agreements are managed by DMP providers. These specialists deal with your creditors on your behalf, meaning you don’t have to have contact with them yourself. As an informal solution, a DMP isn’t legally binding – meaning you can cancel it at any point.  

Minimal Assets Process (MAP)

A Minimal Assets Process (MAP) is a type of Sequestration for people living in Scotland who don’t have assets or surplus income to repay their debts. It lasts for six months, during which time all interest and charges on your debts are frozen. At the end of the MAP, if your financial situation hasn’t improved, your debts are written off.

This process might be suitable for you if you don’t own a vehicle or property, and you don’t have assets valued at over £2,000. You should also have a disposable income of £75 or less, and your total amount of debt should be under £25,000.

Debt Settlement

A Debt Settlement refers to a lump sum payment you make to your creditors. This can be done in two ways. A full and final settlement involves settling your debts in their entirety and it’s recorded on your credit report as ‘satisfied’. On the other hand, a partial settlement is when you pay less than the total amount you owe. The remaining amount is wiped. This is recorded on your credit report as not being a full payment, but it means that creditors can’t chase outstanding debt any more.

A debt settlement might be a good idea for you if you have suddenly come into a financial windfall, for example as a result of a compensation payment, inheritance or the sale of an asset.

Debt Consolidation Loan

A Debt Consolidation Loan offers you a way to take out a new loan in order to repay your existing debts. You do this by consolidating the debts you owe into one, meaning you only have one monthly payment to make. This can help to make your repayments more manageable, and it doesn’t have a negative impact on your credit report, unlike some other debt solutions.

Debt Consolidation Loans can reduce the interest rate on your debt, the amount you pay monthly and the number of creditors you owe. However, it may mean you are making payments for a long period of time and you might end up paying more over the long term.

Find a debt solution that’s right for you

Dealing with debt can make you feel anxious and stressed, but help is at hand. At MoneyPlus, we are experts in providing Scottish debt help and can talk you through your options. We will take the time to ensure we have an in-depth understanding of your financial situation and offer guidance to help you regain control of your finances.

To discover more about how to manage your debt and to receive free debt advice, you can visit www.moneyhelper.org.uk or read about options for paying off your debt.