How a Protected Trust Deed works
Expert debt help for people living in Scotland
Dealing with debt alone can be hard – sometimes all you need is a little guidance to help you work through the tough times and get your finances back on track.
And that’s what we’re here for!
We could help you to lower your debt repayments, freeze interest and charges and write off unsecured debts so that you can be free from debt in 3 years – and it all starts with our Protected Trust Deed Advisory Service.
If you live in Scotland and want to get out of debt, a Protected Trust Deed could be the solution you need to turn your finances around.
Four steps of a PTD
Click the steps below to find out more
Initial PTD Advisory Service:
You will need to provide details regarding your income, outgoings, debts and lenders – so to help you get started, we will complete a financial review with you over the phone.
Once we have all this information and reviewed any documentation that you have sent to us, we will transfer your case to an Insolvency Practitioner.
The Insolvency Practitioner will draft a proposal:
The Insolvency Practitioner will draft a repayment proposal and present your case to your lenders. They will work as hard as possible to secure a lower repayment for you.
For the PTD to go ahead, one third or more of your lenders (by value) must not object to it.
Interest and charges frozen:
As a PTD is legally binding, lenders are no longer allowed to add interest and charges. This means your debts will not increase over the three year repayment period.
Clear and write off debt:
Providing you have kept to the terms of the PTD, you can expect to be free from debts in 3 years. If any debts included in the Deed still exist at the end of the Deed term, your lenders will write these debts off.
- Affordable repayments
- Interest and charges frozen
- Debts written off in 3 years
- Clear debts on successful completion
- Protection from lenders
- Peace of mind
PTDs - what you need to know
Only unsecured debts can be included in a Protected Trust Deed, this means debts that are not secured against your property or something you own. Household bills are also excluded from an IVA.
Included in a Protected Trust Deed:
- Personal loans
- Payday loans
- Store cards
- Credit cards
- Catalogue accounts
- Bank overdrafts
In some circumstances…
- Rent arrears (from previous properties or current housing association property)
- Mortgage arrears
- Council Tax Arrears from previous properties
- Last year or the previous year’s Council Tax from current property
Excluded from a Protected Trust Deed:
- Mortgage repayments
- Social funds and crisis loans
- Hire purchase loans (e.g. car loans)
- Secured loans
- Utility bills
- Student loans
- Child maintenance
- TV licence
A Protected Trust Deed is a debt solution that is only available to people living in Scotland.
If you live outside of Scotland, you could apply for an Individual Voluntary Arrangement (IVA), which will enable you to repay debts typically over 5 years. Interest and charges will be frozen and debts written off at the end of the IVA term.
For the Protected Trust Deed to go ahead, one third or more of your lenders (by value) must not object to it.
If your lenders do not agree to the Protected Trust Deed, then you could consider another debt solution, such as a Debt Management Plan.
A Protected Trust Deed is legally binding and offers protection to you from lenders. So they cannot contact you once the Deed begins or petition for your Sequestration.
The Protected Trust Deed also offers protection to your lenders as you will be making regular payments every month.
Payments are fixed, so if your circumstances change, it is important to let your Insolvency Practitioner know. If you do not keep to the terms of the Deed, you could face Sequestration.
If you qualify for a Protected Trust Deed, we will transfer your case to a licensed Insolvency Practitioner who is qualified under the Joint Insolvency Examination Board and can practice as an Insolvency Practitioner.
To ensure you receive the best possible service, we work in partnership with selected licensed Insolvency Practitioners.
Your Insolvency Practitioner will ensure that your Protected Trust Deed stays on track and that both you and your lenders keep to the terms of the Deed. They may request extra information from you regarding your financial situation and how it changes over time.
A Protected Trust Deed is a great debt solution for people who own their own property because it means you’re protected from lenders petitioning for your Sequestration – the Scottish equivalent to Bankruptcy – providing you keep to the terms of the Deed.
If you are a homeowner, you could be asked to release equity as part of your Protected Trust Deed arrangement, but this will depend on your circumstances and will be discussed with you at the start of the Protected Trust Deed.
Your credit rating will be affected for six years from the start of a Protected Trust Deed. If you already have a history of late or missed payments, then your credit rating may already be affected.
This will also affect your chances of securing credit such as credit cards or loans in the future.