Protected Trust Deed (PTD)
The Protected Trust Deed (PTD) is available in Scotland to people who are facing serious debt problems. It is very similar to the Individual Voluntary Arrangement (IVA) in England.
The PTD offers a valuable alternative to people who would otherwise face sequestration.
As with all debt solutions, our trusted partners do not recommend PTDs unless they are the best solution for you.
All of the advice you'll receive is based on your own particular circumstances and needs.
A Trust Deed is designed to let you address your debts over a fixed period of three years.
An Insolvency Practitioner works with you to assess your circumstances and propose new monthly payments to your creditors. These new payments are based on what you can afford and they will replace all of your current monthly repayments.
Your new payments should be significantly less than minimum payments on credit cards and loans, and you will also have any debts that remain at the end of the PTD period written off.
Support with creditors
The Insolvency Practitioner who puts together your proposal also handles all correspondence with the people you owe money to. This means that you will no longer have to deal with creditors yourself – and because the PTD is a formal legal arrangement, you are protected from further legal action by creditors once your PTD is registered.
You will need to cooperate with the Insolvency Practitioner, pay the monthly contributions and avoid further credit. You also need to tell the insolvency practitioner if your financial circumstances change.
A PTD will usually write off significant amounts of your debt, and will last three years. This is a very attractive alternative to sequestration but it is important to seek the right advice.
Most of your creditors will require certain minimum standards to be met before they will accept a PTD proposal, so you'll need to work with someone who understands what kind of proposal is likely to succeed.
Protected Trust Deed advantages/disadvantages
- You no longer have to deal with creditor correspondence
- Monthly payments are set to what you can afford
- Interest is frozen
- Your remaining debts are usually written off after three years
- You will usually be able to hold certain public offices/remain self-employed or be a company director
- Credit is not available during the PTD period
- Credit rating is poor for a further year after the PTD
- Credit is likely to be more expensive for you in future
- Three year period default can result in bankruptcy proceedings
- Details of your Trust Deed will be published in the Edinburgh Gazette and on the Insolvency Register
For more information regarding Protected Trust Deeds, call us now on 0808 163 9579 to speak to an advisor or complete the form below.
Complete this form and we'll find the right option for you