Protected Trust Deed
What is a Protected Trust Deed?
- Protected Trust Deeds is only available to residents in Scotland and similar to Individual Voluntary Arrangements (IVAs).
- They are legally governed agreements and have structured payments set out over a specific period of time.
- Payments are made monthly and depend upon what you can afford.
- Once the agreed repayment period has finished, any remaining debt is written off.
How Does a Protected Trust Deed Work?
- The first stage of a Protected Trust Deed requires you to make a list of all your creditors, how much you owe to each creditor and how much disposable income you can make available every month to allocate towards repayments.
- The trustee will create a form of proposals to the creditors for approval, and then provide the Protected Trust Deed.
- If registered, it will prevent legal action from being taken against the debtor and also freeze interest on debts.
- In order to be granted, at least two thirds of your creditors (by value) must agree to it.
- By engaging in a Protected Trust Deed, you creditors will have the right to any equity in your property, although there are means to protect your property.
- Agreeing to a Protected Trust Deed requires you to co-operate with the trustee, meet the monthly payments, refrain from taking credit for the duration and inform the trustee of any windfalls or change in your financial circumstances.
What are the Benefits of a Protected Trust Deed?
- All correspondence from creditors is handled by the trustee, easing the pressure that comes with debt.
- It costs less to administer than bankruptcy and is a flexible method of debt recovery.
- Under the terms of the Protected Trust Deed, you’ll be safe from added charges or interest and no extra action will be imposed upon you.
- Generally, you can remain in public office, self-employed or director of your company.
- The repayment period is generally just three years.
- Unlike bankruptcy, the information is not made publically available.
How Does a Protected Trust Deed Differ from an IVA?
- There is very little difference. In principle, a Protected Trust Deed is the Scottish version of an IVA.
Is a Protected Trust Deed Right for Me?
- Contact a debt solution organisation to discuss your current situation and all of the available debt recovery options.
- Be cautious that some debt solution companies will put making money ahead of giving the best advice.
When Can I Call?
- You can call the debt helpline any time; 24 hours a day, 7 days a week, 365 days a year.
How Can I Contact a Debt Solution Organisation?
- Freephone: 0800 074 6918
- Email: info@e-insolvency.co.uk
