Can I get credit during a Trust Deed?

A Protected Trust Deed is a Scottish insolvency solution. While it's active, there's a £2,000 borrowing limit without your trustee's permission, and most lenders will decline anyway.

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Written by the AfterMy team · Reviewed by Ben Miller, Customer Success Manager

Last reviewed: June 2026

Quick answer

Usually not without permission. A Protected Trust Deed is a Scottish insolvency solution, and while it is active you cannot obtain credit over £2,000 without your trustee's permission. That is a legal requirement. Most lenders will decline anyway because the Trust Deed shows on the public register and your credit file, and borrowing during it is rarely wise. Waiting until discharge puts you in a stronger position.

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The short version

A Protected Trust Deed, or PTD, is a formal debt solution in Scotland, set up under Scottish law rather than the rules that govern an IVA in England and Wales. While it is active, there is a legal limit on borrowing: you cannot obtain credit of more than £2,000 without your trustee's permission. On top of the rule, there is the practical reality. A Protected Trust Deed is recorded on the public Register of Insolvencies and on your credit file, so mainstream lenders will usually decline, and the credit you could get tends to be expensive. For most people, the monthly payment is set at an affordable level and there is no need to borrow during the term anyway.

The £2,000 rule

This is the figure to remember, and it is higher than the £500 limit that applies during an IVA or a DRO. During your Trust Deed you can take on credit up to £2,000, but anything above that needs your trustee's permission first. It is a legal requirement, not just guidance, so going around it puts your arrangement at risk. As with any debt solution, your trustee is there to protect the arrangement. If borrowing is genuinely essential and affordable, they may consider it, but a general application to borrow is unlikely to be approved.

Key point

£2,000 is the legal threshold. Anything above needs your trustee's permission first.

Why borrowing during a Trust Deed is rarely wise

Your Trust Deed is built around a monthly contribution set at what you can afford after essentials. New borrowing adds a payment on top of that, which can put the arrangement under strain. And because your file shows the Trust Deed, any credit you can get is likely to be high cost. Taking on expensive credit while you are clearing debt works against the whole point of the arrangement.

What helps your file while you are in a Trust Deed

You do not need new credit to make progress. Staying on the electoral roll, keeping every bill and your Trust Deed contribution on time, and keeping things steady all build a better picture for later. Most people find the most useful thing they can do is simply complete the Trust Deed cleanly.

What happens when your Trust Deed ends

A Protected Trust Deed typically lasts four years. When you have met your obligations, your trustee applies to the Accountant in Bankruptcy to discharge you, using a form known as Form 5. Your discharge is recorded in the Register of Insolvencies, and you receive a certificate or letter of discharge confirming your remaining included debts are written off. After discharge, the restrictions lift and you are free to apply for credit again. The Trust Deed marker stays on your credit file for six years from the date it was granted, so specialist lenders may be the route for a while, but your options widen as your file recovers. Sharing your discharge certificate with Experian, Equifax and TransUnion helps make sure your debts show as satisfied or settled. That is what AfterMy is built for, helping you work out what to do first, in what order, staged around your own dates.

Reviewed byBen Miller, Customer Success Manager, AfterMyMore about Ben

Frequently asked questions

What is the credit limit during a Trust Deed?
You cannot obtain credit over £2,000 without your trustee's permission. It is a legal requirement, and higher than the £500 limit during an IVA or DRO.
Will my trustee approve new credit?
Only rarely, and usually only for something essential and affordable. A general application to borrow is unlikely to be approved.
Does a Trust Deed show on a public register?
Yes. A Protected Trust Deed is recorded on the Register of Insolvencies in Scotland, as well as on your credit file.
How long does a Trust Deed stay on my credit file?
Six years from the date it was granted. It then drops off, and sharing your discharge certificate with the credit reference agencies keeps your file accurate.
Is a Trust Deed the same as an IVA?
No. A Trust Deed is the Scottish equivalent, set up under different law, with a different process and a four-year term rather than the usual five to six years of an IVA.

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