Trust Deed discharge: what happens at the end

When does a Trust Deed actually end?

A protected Trust Deed normally lasts around four years, though the exact term is set at the start and can run longer if payments were missed or the trustee agreed an extension. It ends when you have made all the contributions you agreed to and cooperated with your trustee throughout.

Your trustee reviews your case, confirms you have done everything required, and moves to discharge you. If you are close to your end date and have heard nothing, contact your trustee and ask where things stand.

Chasing this is normal and sensible, because the discharge does not always arrive the moment your last payment leaves your account.

What discharge means and the paperwork to keep

Discharge is the formal confirmation that your side of the Trust Deed is complete. From that point, the remaining balances on the debts included in your Trust Deed are written off, and those creditors cannot pursue you for them again.

Your trustee applies to the Accountant in Bankruptcy for your discharge using Form 5 and must tell you the date you were discharged. Keep the confirmation of your discharge date somewhere safe, and keep a digital copy too.

Years from now, a mortgage broker or lender may ask you to prove when your Trust Deed ended, and that confirmation answers the question. Your trustee is discharged separately a little later, once the estate has been wound up and creditors have been paid what was gathered in, so do not worry if you see activity continuing after your own discharge.

Do you get any assets back when you are discharged?

Usually, no. Any assets that were transferred to your trustee when the deed was signed were taken over precisely so their value could go to your creditors, and by the time you are discharged, that has usually already been dealt with.

If you are a homeowner, whatever was agreed about the equity in your home at the start, whether a payment, a remortgage or an arrangement with a relative, will normally have been settled during the deed rather than at the end. The only situation where money comes back to you is if your creditors have been paid in full together with interest and something is left over.

If you are unsure what happened to a specific asset, ask your trustee for a final accounting before they are discharged, because it is much easier to get answers while the case is still open.

What happens on your credit file

Discharge and your credit file run on different clocks, and mixing them up causes confusion. The Trust Deed marker stays on your credit file for six years from the date it started, or until the date it ended if that is later.

A deed that started in 2022 and finished in 2026 keeps its marker until 2028. Until that date, lenders who check your file will see the Trust Deed.

Once you are discharged, check your credit reports with all three credit reference agencies. Every debt that was included in your Trust Deed should show as settled or partially settled with nothing outstanding, not as a live debt that is still being chased.

Errors do occur and are worth fixing, because a debt wrongly showing as active can hold you back long after the deed itself is done. Our guide on when a Trust Deed leaves your credit file covers the exact timings in more detail.

What you can do after discharge

Once you are discharged, you can start rebuilding. Credit builder products are designed for people with a recent insolvency on file: small limits, monthly reporting to the credit reference agencies, and a slow accumulation of clean history that changes how your file reads.

Make sure you are on the electoral roll at your current address and keep every bill on time. Your Comeback Plan maps your dates and shows options from our panel you may be able to apply for.