What is Scottish Trust Deed?
A Scottish trust deed is an agreement between the debtor and the creditor made by a trustee.  It is available to the Scottish people only and not to the people of London or Ireland. It is made to pay an affordable amount of money by monthly payment scheme to the creditor.

The trustee tries to set up an amount payable by the debtor with due respect to his monthly income. A trust deed generally lasts for 36 months but in some critical cases it may last for 48 months. After 36 months of regular payment of the amount set by your trustee you are free from debts and the remainder, in some cases up to 90% will be relinquished.

Your creditors are legally blocked to contact you in any manner after the deed is protected and after 36 months you are free to proceed with a clean profile.
When a creditor should go for a trust deed?
Trust deeds are used as alternatives of bankruptcy.

If there is no other way to pay the debts then a debtor can go for a trust deed. The creditors accept the proposal of trust deed only when there is no other way to get the money owed.

How can one get a trust deed?
If you have decided that there is no other way other than a Scottish trust deed then at first make good research about the Scottish trust deed firms. You have to be aware of your income, property and your vehicle which could be affected after you take this decision. The firm officials would take details of your credits at first and then set up a draft. They would send the draft to you for signature. Next your trustee will present the proposal to your creditors and once it is passed it is protected. The most popular alternative to the Trust Deed is the debt arrangement scheme which unlike the trust deed does not involve you going insolvent.
Pros of Trust Deed:
-  No more disturbances from creditors.
-  Termination of interest and charges.
-  Free of debt within 36 months.
-  Carry on your business.
Cons of Trust Deed:
-  It will affect the credit rating (unlike the debt arrangement scheme)
-  Chance to remortgage
-  Covers no secured loans
The debtor is barred for that 36 months to take any more debts and he has to make a regular payment of the settled amount otherwise the deed would be disqualified and creditors are free to sue him for sequestration.