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Home / Scottish Trust Deed / How long does a Trust Deed last?
SCOTTISH TRUST DEED

How long does a Trust Deed last?

A Protected Trust Deed normally runs for 48 months (4 years). At the end of the term, any remaining debt included in the Trust Deed is written off, provided you have met all the conditions.

The 48-month standard term

Protected Trust Deeds under the current Scottish framework run for 48 months from the effective date. This is set in regulations and applies to nearly all cases.

You make monthly contributions for the full 48 months. At the end, provided you have complied with the terms, the Trustee applies for your discharge and any remaining debt covered by the deed is written off.

Extensions and variations

The 48-month term can be extended in some circumstances — for example if equity release could not be completed, or if a payment holiday has extended the total time. The regulations allow for extensions but not indefinite ones.

Variations to reduce monthly payments can be agreed if your circumstances change. Extensions to the term are one common way to accommodate such changes.

Credit file impact runs longer

The Trust Deed record stays on your credit file for six years from the start date. Because the Trust Deed itself runs for four years, the credit file entry persists for about two years after discharge.

The Register of Insolvencies entry is removed shortly after discharge.

Key takeaways

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