A Protected Trust Deed is one of the key debt management solutions available for people living in Scotland. It is generally regarded as the equivalent of an English individual voluntary arrangement (IVA).
A protected trust deed (PTD) is a legally binding agreement between you and your creditors in which you agree to repay part of what you owe. This repayment is normally in the form of regular monthly payments from your income which last for a period of three years.
However if you are a home owner, a PTD can also involve the release of equity
from your property.
To find out more click on the following links or continue reading below.
Where to start
• Ask the experts – use our Tust Deed Forum
• Call us now – speak to one of our advisors in confidence to see if a trust deed is right for you.
Government Advice
The Government's Insolvency Service has also produced a useful guide to personal debt solutions "In Debt - Dealing with your creditors". This and other useful debt solution resources can be viewed in the "Useful Links" box at the bottom of this page.
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KEY INFORMATION ABOUT A PROTECTED TRUST DEED
Only available in Scotland
Trust Deeds (TD) are only available for people who are currently resident in Scotland. However, they cover all personal unsecured debt whether the creditors are based in Scotland or England and Wales.
Protection from creditor action
Once a TD has been accepted by your creditors, and as long as you stick to its terms, your creditors cannot take any further action against you to recover their debts. For example creditors can no longer take court action resulting in an attachment of earnings, charging order against your property, warrant sale of household goods or a petition for your bankruptcy.
Debt written off
Your TD will require you to make payments from your income for a period of up to 3 years. After this and any agreed assets have been surrendered, all outstanding debt will be written off by your creditors and you will be left to continue with your life debt free.
The payment period of a TD can be extended if you have equity in your home which you are unable to realise because you are unable to remortgage.