The £5,000 threshold
Scottish Trust Deed regulations require minimum unsecured debts of £5,000. This is a statutory minimum, not a guideline — Trust Deeds are not available below this level.
The debt must be across multiple creditors (typically at least two) because the deed requires a creditor vote and no single creditor should have a veto in the practical sense.
Below £5,000, the Debt Arrangement Scheme (DAS) or the Minimal Asset Process (MAP) are usually more suitable Scottish alternatives.
Why the minimum exists
Trust Deeds involve Trustee fees, court and Accountant in Bankruptcy oversight, and creditor management over 48 months. The administrative cost is only justified when the debt is substantial enough for creditors to receive a meaningful return.
Below £5,000, the Trustee fees would consume a disproportionate share of what creditors would otherwise recover — meaning creditors would object and the Trust Deed would not become Protected.
No upper limit
There is no upper limit on debt for a Trust Deed. Higher debts (£50,000, £100,000, occasionally more) are common. What matters is that your income can support monthly contributions that produce a reasonable return for creditors.