Protected Trust Deed FAQs
Questions:
- Contact us
- How do I contact you about Protected Trust Deeds or Sequestration?
- Credit and creditors
- Why will my creditors agree to a Protected Trust Deed?
- General
- Is a Protected Trust Deed the same as sequestration?
- What happens at the end of the Trust Deed?
- What happens if I enter into a protected trust deed?
- Personal circumstances
- Who needs to know?
- Time and costs
- How long does a Protected Trust Deed last?
Answers:
- How do I contact you about Protected Trust Deeds or Sequestration?
To contact us, simply call on 0800 294 6310 or fill in the 30 second debt test by clicking the link. Or to request more information about PTDs or sequestration online, click here. - Why will my creditors agree to a Protected Trust Deed?
Usually your creditors wish to help and simply want to recover as much of your debt as possible. Additionally, they know that sequestration is costly, time consuming, and a large amount of the money will be used to cover professional fees. However there is no guarantee that your creditors will accept the PTD as each case will be considered against your personal circumstances and is subject to creditor approval. - Is a Protected Trust Deed the same as sequestration?
Although it is still governed by the court and a legal process for unmanageable debts, a Protected Trust Deed is a less formal process than sequestration. - What happens at the end of the Trust Deed?
Your remaining debt included within the PTD will be written off and you will then be free from your previous debt. - What happens if I enter into a protected trust deed?
Your PTD will be supervised by a licensed insolvency practitioner, who is responsible for all negotiations with your creditors and for ensuring that you keep to the terms of the Trust Deed.
1. If you have equity in your property, this will usually need to be released usually as part of the final settlement of the PTD in order to pay your creditors. However, as a result of the PTD you will not lose your home.
2. It should not prejudice your employment. You will in most cases still be able to remain self-employed and continue to serve as a director of a company.
3. The arrangement is binding on you as well as your creditors. If you were to default on the arrangement then the Insolvency Practitioner can petition for your sequestration (Bankruptcy).
4. Entering into the PTD may affect your credit rating. - Who needs to know?
As it is a confidential arrangement, no-one will have to know that you have entered into a Protected Trust Deed except for you, your creditors and us. You can even choose to notify your family or partner however, we recommend that you do. - How long does a Protected Trust Deed last?
Most last for a maximum of 3 years, however this is dependant on your financial and personal circumstances. For information on your specific circumstances, speak to one of our dedicated advisers.