Trust Deeds are very similar to an but for residents of Scotland. A Trust Deeds is a legally binding agreement between you and your creditors and will usually last 3 years. It is regulated by The Bankruptcy Act 1985 (Scotland) and offers an alternative to sequestration (bankruptcy).
An Insolvency Practitioner will make a formal proposal to your creditors detailing your monthly payment offer. Once accepted, the Trust Deed becomes legally binding on all creditors and prevents them from proceeding with a sequestration petition or any further action.
Even those creditors who did not agree will be bound by the arrangement as long as a majority vote is obtained.