Protected Trust Deed
A Protected Trust Deed offers flexibility, affordability and protection from your creditors which many other financial solutions cannot offer, as it is a legally binding agreement. If you enter into a Protected Trust Deed, you make one affordable monthly payment to an Insolvency Practitioner who collects your payments, deals with the sale of any other significant assets you may have and distributes the money collected to your creditors. After three years, you should be debt free, after paying only a percentage of your total debts.
Providing that no more than one third in value or a majority in the number of creditors object to the terms proposed, then the Trust Deed will become ‘Protected’, binding all creditors to its terms, and allowing you to carry on with your life without the hassle of your debts.
Benefits of a Protected Trust Deed
- The pressure from creditors is removed as they will no longer be legally entitled to chase you for payment
- You will only repay what you can reasonably afford
- Penalty and Interest charges will be frozen
- You will not be required to meet our fees for the protected trust deed directly
- You will no longer have to correspond with your creditors as this is done by the trustee
- You will make one set affordable monthly repayment
- Once completing the Protected Trust Deed, which usually takes a minimum of 3 years, you will have cleared your debts and can look forward to a debt free future.
Points To Consider
- Existing diligence may continue to be effective
- Failure to adhere to the terms of the PTD puts the client’s assets at risk
- Self employed clients may find some restrictions on their ability to trade
- A client cannot be the director of a limited company
A Protected Trust Deed is available in Scotland only.
A Protected Trust Deed is available in Scotland only.
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