Debt Help Scotland
Almost everyone has some form of debt, be it money owed on a credit card, a bank loan or overdraft, or a mortgage. But if you are having trouble paying your bills or loan repayments, you should get help as soon as possible. Here are some useful tips to help you.
A Protected Trust Deed (PTD is designed to enable those who cannot repay their debts a way to establish, a monthly repayment schedule based on what the debtor can afford to pay. The Protected Trust Deed (PTD) will last for a specified period, usually three years. When the specified term of the arrangement comes to an end, any remaining debts are written off.
How does a Trust Protected Deed (PTD) work?
The Trust Protected Deed (PTD) is a way for people to repay their debt at a set monthly figure until the agreement has finished, Agreements normally last 3 years. The Protected Trust Deed is supervised by a licensed insolvency practitioner, who is responsible for all negotiations with your creditors and who is also responsible for ensuring that you keep to the terms of the Trust Deed.
Steps to setting up a Protected Trust Deed (PTD)
Step One – One of our experienced Debt Advisors will complete a full fact find to determine exactly how much you can afford to pay towards your Protected Trust Deed (PTD) and they will see if a Protected Trust Deed (PTD) is the best debt solution for you.
Step Two – Once we know that a Protected Trust Deed (PTD) is the best debt solution for you, we will collate all information and get all the paperwork for you to read and sign, it must be returned asap so the Protected Trust Deed (PTD) process can start.
Step Three – Once you have returned all the relevant signed documentation, an insolvency practitioner will look at you case and start putting together your Protected Trust Deed (PTD) proposal. Once you Protected Trust Deed (PTD) has been accepted, you will start to make monthly contributions for a set period of time (normally 36 months).
Step Four – on your 36th Protected Trust Deed (PTD) payment, you will be discharged and totally debt free.
Advantages of a Protected Trust Deed (PTD)
- The trustee handles all correspondence from creditors, therefore relieving the pressure of debt.
- A Protected Trust Deed (PTD) is usually more flexible and costs less to administer than bankruptcy (sequestration).
- With a Protected Trust Deed (PTD), your creditors will be unable to add further interest, charges, or take any further action against you.
- You will in most cases still be able to hold certain public offices.
- You will in most cases still be able to remain self-employed and continue to serve as a director of a company.
- Protected Trust Deeds (PTD) normally last 3 years, after which any remaining debt will effectively be written off.
- Information about the Protected Trust Deed is not published unlike bankruptcy (sequestration).
Disadvantages of a Protected Trust Deed (PTD)
- Existing arrestment’s and other diligence continue to be effective. It should be noted that Councils who carry out earnings arrestment will generally lift arrestment’s upon protection of the Trust Deed.
- You cannot be a company director of a limited company unless the company’s Article of Association state otherwise.
- 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 bankruptcy (Sequestration)
- Entering into any arrangement with your creditors may affect your credit rating.
- Creditors are not obliged to accept a proposal for a Trust Deed. However, the Trustee will negotiate with all your creditors. Unless creditors, who are owed more than one third of the total debt object (which is extremely rare), the Trust Deed will become protected.
Useful Links
Trust Deeds
Trust Deed - Pros & Cons
Trust Deed - Criteria
Trust Deed - Steps
Trust Deed - Alternatives
Trust Deed - Why Choose a Trust Deed?
Trust Deed Vs Debt Management Plans
Trust Deed Vs Sequestration
Trust Deed - FAQs
Trust Deed - Glossary
