Protected Trust Deed
Learn more about Protected Trust Deeds in Scotland
What is a Protected Trust Deed (PTD)?
Protected Trust Deeds – or Trust Deed/PTD – are designed to help people with unaffordable debts of at least £5,000 and needs to be set up with the help of an Insolvency Practitioner who will charge fees to set up and supervise the PTD, however these fees will usually be included within the monthly payment which you make.
The Insolvency Practitioner will write to your creditors and ask them to agree to the trust deed. Your trust deed will then become protected if a sufficient proportion of creditors agree to it.
How do Protected Trust Deeds work?
The agreement usually lasts for four years and once it’s completed, any unsecured debts included will be written off.
During your Trust Deed, you will continue to pay your bills and other important living costs and make a payment into your trust deed towards your unsecured debts. Your creditors will expect you to pay in as much as you realistically can afford, so may want you to cut back on expenditure in some areas.
Trust deeds are only available for residents of Scotland. If you live in England, Wales, or Northern Ireland, please visit our Individual Voluntary Arrangement (IVA) page for more information.
Benefits and Considerations of Protected Trust Deeds
Benefits of a Protected Trust Deed
- You will be debt free within an agreed time frame
- Interest and Charges will be frozen once the Trust Deed is protected
- After successful completion any remaining debt included in the arrangement will be written off
- Creditor contact will stop once the Trust Deed is accepted
- A Trust Deed will protect your home if you are a homeowner
Considerations of a Protected Trust Deed
- Once your Protected Trust Deed is approved you are bound by formal insolvency proceedings and your credit rating will be affected
- Failure of a Protected Trust Deed could result in bankruptcy
- A re-mortgage may be required if you are a homeowner and if you cannot re-mortgage the Protected Trust Deed may be extended
- Your details will be recorded on the Register of Insolvencies
Other Scottish Debt Solutions
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We pride ourselves on delivering the highest level of service to help people find a solution to overcome problem debt.
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