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What is a Trust Deed?
Protected Trust Deed FAQs
What are the Advantages to having a Protected Trust Deed (PTD)?
A Trust Deed (Scottish Trust Deed) can often be a much better and cheaper option then sequestration.
Once in this agreement you should not have to worry about being contacted by the creditors involved and they will not be able to take legal action.
A Trust Deed will have no effect on your job or career unlike sequestration.
The Trust Deed) has a set term till completion (normally 36 months) and at the end of the turn, you will be totally debt free.
What are the Disadvantages to having a Protected Trust Deed (PTD)?
Your property, equity or assets may be at risk, our debt advisors will run through this with you.
Your credit rating will be affected, as it would be with any other debt management program.
If you miss any payment, unless you have a change in circumstances your Protected Trust Deed (PTD) may fail and your creditors may look at sequestration as another option..
A Trust Deed will have no effect on your job or career unlike sequestration.
The Trust Deed) has a set term till completion (normally 36 months) and at the end of the turn, you will be totally debt free.
How long does a Protected Trust Deed (PTD) last for?
A Trust Deed has a normal time period of 36 months but, this may change depending on your financial situation.
Can I lose my house with a Protected Trust Deed (PTD)?
No, but you will be asked to try and release any equity from your property , if you can release any equity then that equity will be paid into your protected trust deed (ptd).
What are the differences between Protected Trust Deeds (PTD) & Individual Voluntary Arrangements (IVA)?
A Protected Trust Deed (PTD) is the Scottish equivalent to an Individual Voluntary Arrangement (IVA)
Will I need to tell my partner about a Protected Trust Deed?
You would only need to tell your partner if you have joint debts, although it is often suggested that you advise those closest to you.
Will I have to close my business?
No, you can keep the business running on a protected trust deed (ptd) and unlike sequestration (bankruptcy) you can act as a company director
Will my creditors agree to my Protected Trust Deed?
In most cases, a Trust Deed will be a more favourable solution to your creditors. It allows them to recoup some of your debts whereas with bankruptcy they may receive significantly less or will have great difficulty collecting their money.
Can one creditor refuse to accept the Protected Trust Deed (PTD)?
Yes, but that doesn't mean that the protected trust deed (ptd) has failed it will only fail, if the creditor makes up a third or more of the total value of your debt. If that creditor accounts for less than one third then they will be bound by the terms of the Trust Deed proposal.
Is a Protected Trust Deed (PTD) the same as sequestration?
No, the court governs them both and they are both legal processes for people facing insolvency but a Trust Deed is considered to be less formal.
Can I cancel a Protected Trust Deed (PTD)?
No, both you and your creditors have to accept the rules and regulations surrounding a Protected Trust Deed (PTD).
What happens if Im not approved for a Protected Trust Deed (PTD)?
It is not the end of the world, there are other debt solutions available such as adebt management plan or consolidation loan.
What if I have a financial windfall or lose my job whilst on a Protected Trust Deed (PTD)?
You must contact your Insolvency Practitioner (IP) and update him on your financial situation and he/she will advise you accordingly.
How long does it take to set up?
The process to set up a Trust Deed is normally 6/8 weeks, but that all depends upon the information you provide and the time scale you provide it.
What creditors can be included in a Protected Trust Deed (PTD)?
Typically all unsecured debts such as money owed to finance companies, banks, store cards, credit cards, Inland Revenue, HM Customs & Excise (VAT), Council Tax and loans made for your family. A Protected Trust Deed (PTD) will not include the following debts: mortgages, hire purchases, debt incurred through fraud, student loans, fines, maintenance and child support arrears.
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