What to expect in the final months of your Trust Deed

Your Trust Deed has nearly finished. As you get closer to the end, you might be wondering what happens next. Here's what to expect, what to check and what happens before your Trust Deed is discharged.

Disclaimer: This guide is for general education only and isn’t financial or debt advice.

Confirm your discharge date 

As you approach the end of your Trust Deed, it might be helpful to speak to your Trustee and check that the final date on your Trust Deed paperwork is correct. Once you’ve confirmed the discharge date, continue to follow your Trustee's instructions until your Trust Deed is formally completed.
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What could delay your Trust Deed completion, or your final payment date?

Sometimes a Trust Deed finishes later than expected. This isn't necessarily a sign anything's gone wrong; it's usually one of the following:

• You might have taken a payment break, or extra months were added along the way.
• If you own your property, your Trustee will have agreed with you early on (usually right at the start of your Trust Deed)  how any equity in your home will be handled. This might mean paying a set amount by an agreed date, or making extra monthly payments once your main Trust Deed period ends. As long as you stick to this agreement, the figure you agreed stays fixed, even if your property's value changes later. If you're not sure what was agreed for your property, check with your Trustee.
• If you receive money you weren't expecting during your Trust Deed, for example, an inheritance or a lottery win,  this is usually treated as an asset and paid into your Trust Deed in full, on top of your regular payments. Always let your Trustee know as soon as this happens.

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What happens in the closure process?

When you make your final payment, your Trustee checks that everything's been met before applying to have you formally discharged. The application is then sent to the Accountant in Bankruptcy (AiB), the government body that oversees Trust Deeds in Scotland.

Once AiB is satisfied, your discharge is recorded on the Register of Insolvencies, and that date becomes your official date of discharge. AiB lets your Trustee know straightaway, and your Trustee must then tell you and your creditors within 7 days.

You'll receive confirmation that your debts included in the Trust Deed have been written off. It may arrive by post or email depending on your provider. Either way, it's worth saving or printing a copy for your records.

Remember, once your discharge is confirmed, your Trust Deed is finished. Any outstanding unsecured debt named in your Trust Deed no longer needs to be paid back to those creditors. Some debts aren't included in a Trust Deed even if you have them, for example, court fines and, in some cases, child maintenance arrears. See Citizens Advice for the full list. 

When your Trust Deed is complete, check that any Standing Orders or Direct Debits linked to it are cancelled, and confirm with your Trustee that any card payments have stopped too.

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What happens to my property title?

If your property had a notice registered against it while you were in your Trust Deed, your Trustee will arrange to have this removed once your obligations are met. This is called an inhibition, and it's held with Registers of Scotland rather than a restriction on the property itself.

It's worth asking your Trustee to confirm they've done this, and checking your property title yourself a few months after completion, just to be sure it's gone through.
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What documents should you keep?

Your paperwork, particularly the notice of discharge, marks the end of the process and gives evidence of years of effort in making payments. 

Keep a folder in a safe place, and put in it: your notice of discharge, final report, original Trust Deed paperwork, and any subsequent letters.
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What will change on your credit report?

Your credit report won't update all at once. It changes gradually in the weeks, months, and years after your Trust Deed ends. As long as you keep up responsible credit habits, you should see a positive change over time.

There's a predictable timeline of changes to expect. Here's what usually happens, and when:

When does the Register of Insolvencies update?

• The Register of Insolvencies will update soon after your Trustee has informed the AiB and the discharge has been approved. The notice of discharge will then remain on the register for 12 months.

When will the Trust Deed disappear from your credit file?

• Six years from the start date of your Trust Deed. Any defaulted accounts included in your Trust Deed will also show on your credit report for six years, before both the Trust Deed marker and defaulted accounts disappear. 
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Rebuild your credit history

When your Trust Deed ends, it's just the beginning of a fresh start for your finances. 

Rebuilding your credit does take time. But it’s worth persevering, as a stronger credit score can give you more flexible financial options in the future.

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In our step-by-step guide to rebuilding your credit score after a Trust Deed, we'll cover what usually happens to your credit history after a Trust Deed finishes, and how you can start rebuilding.