Timeline

How Long Does a Trust Deed Last?

Most Trust Deeds last 48 months (4 years), but the timeline can vary. Here is a clear guide to every stage - from first assessment through to final discharge.

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The Standard 48-Month Term

A Protected Trust Deed typically runs for 48 months (4 years) from the date it is granted protected status. During this time, you make an agreed monthly contribution which your Trustee distributes to creditors. At the end of the term, provided you have met all your obligations, any remaining qualifying unsecured debt is legally written off.

Your Full Timeline at a Glance

Weeks 1 - 3
Free Assessment and Proposal Preparation
A licensed Insolvency Practitioner reviews your income, debts, assets, and outgoings. They calculate an affordable monthly payment and draft the formal Trust Deed proposal. You review and agree the terms before anything is sent to creditors.
Weeks 3 - 8 (5-Week Creditor Window)
Creditor Notification Period
The proposal is sent to all known creditors and advertised in the Edinburgh Gazette. Creditors have 5 weeks to formally object. If creditors representing less than one-third of total debt value object (or do not respond), the Trust Deed is granted protected status.
Month 2 Onwards
Protected Status - Payments Begin
Once protected, all creditor contact and recovery action must legally stop. You begin your single monthly contribution. Your Trustee handles all communication with creditors, distributes payments, and administers the Trust Deed.
Months 6, 18, 30, 42
Annual Financial Reviews
Your Trustee reviews your financial situation each year. If your income has increased materially, your contribution may be revised upward. If your circumstances have worsened significantly (such as redundancy or illness), it may be reduced. You should notify your Trustee of any significant changes promptly.
Months 42 - 48 (Final Year)
Equity Review and Final Accounting
Your Trustee assesses whether any equity in your home needs to be released for creditors. This is typically handled by remortgaging, a lump sum payment from a third party, or extending the payment term. If you do not own property, or have little to no equity, this stage is straightforward. Your Trustee also prepares a final accounting of all payments made.
Month 48 + (Discharge)
Certificate of Discharge Issued
Once all your obligations have been met, your Trustee issues a formal certificate of discharge. All remaining qualifying unsecured debt included in the Trust Deed is legally written off. Your Trust Deed is recorded as discharged on the Register of Insolvencies.

When Can the Term Be Extended?

There are several circumstances in which your Trust Deed may run beyond the standard 48 months:

  • Home equity: If you are a homeowner and cannot remortgage to release equity, your Trustee may agree to extend your payments by up to 12 months as an alternative, bringing the total term to 60 months.
  • Missed payments: If you fall behind on your monthly contributions, your Trustee may extend the term to recover the shortfall rather than move to sequestration.
  • Significant income increase: In some cases, a material increase in income may result in an increased contribution for the remaining term rather than a term extension, but the total recovery for creditors may change.
  • Asset realisation delays: If there are complications in assessing or releasing assets (particularly property), the formal discharge may take longer to issue even after your payment term ends.

What if my circumstances change? Life events such as redundancy, serious illness, or a relationship breakdown can all affect your ability to maintain payments. Contact your Trustee immediately if this happens. Most Trustees will work with you to find a solution rather than move straight to sequestration - but they need to know about problems early.

What Does Discharge Actually Mean?

Discharge is the legal end point of your Trust Deed. Once you receive your certificate of discharge:

  • All qualifying unsecured debts included in the Trust Deed are legally written off - creditors have no further claim against you for these amounts
  • The Trust Deed is marked as discharged on the Register of Insolvencies
  • Your Trustee's role in administering your affairs comes to an end
  • The Trust Deed entry remains on your credit file for 6 years from the start date (not the discharge date)
  • You can begin rebuilding your credit and financial life without the burden of the included debts

How Does This Compare to Other Solutions?

SolutionTypical DurationDebt Written OffCredit Impact
Protected Trust Deed48 months (extendable)Yes - remaining balance6 years
Sequestration (Bankruptcy)12 months to dischargeYes - most debts6 years
Debt Arrangement SchemeVaries - until full repaymentNo - full repayment6 years
Informal ArrangementVaries - negotiatedSometimes - negotiatedVaries
Minimal Assets Process6 monthsYes - most debts6 years

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