A Protected Trust Deed (PTD) is a legally governed procedure for individuals resident in Scotland who have serious debt problems and are struggling to repay their borrowings.
It is the equivalent to IVA legislation, which services the rest of the UK. Trust Deeds are regulated by The Bankruptcy (Scotland) Act 1985 and were introduced as an alternative to sequestration for those with overwhelming and unaffordable levels of debt.
Like an IVA, a Trust Deed allows the debtor to repay their debts over a fixed period of time. The amount which will be paid back is dependant on the individual case, and any remaining debt at the end of the pay-back spell is written off.
Please see our Trust Deed FAQs for the most frequently asked questions by our clients. For Trust Deed advice and information, please call our Trust Deed advisors free on 0800 048 1752.
A Trust Deed is only suitable to an insolvent debtor, meaning that they do not have enough disposable income to meet their minimum debt repayments.
Instead of making unaffordable payments to these debts, a Trust Deed will consolidate them into one monthly payment. You make one payment to these debts, and that amount is based on your finances so you only pay what you can afford.
Your creditors will vote on whether or not they accept your Trust Deed proposal. As soon as it is agreed no further action can be taken against you and all interest and charges are frozen.
At the end of the Trust Deed agreement, any outstanding debt is automatically written off which leaves you free of any unsecured debt.
A Trust Deed requires the debtor to commit to making a monthly payment over a fixed period of time and to cooperate with the Insolvency Practitioner.
To find out whether a Trust Deed is the best solution to your debt free future, call our expert One Advice advisors on 0800 048 1752 or take our online 1 Minute Debt Test.
Please Note: A Trust Deed is only available to residents in Scotland. The remainder of the UK is serviced by IVA legislation.