Protected Trust Deeds
Protected Trust Deeds (PTDs) are a type of formal insolvency procedure that is exclusively available in Scotland A Protected Trust Deed is a legally binding arrangement for the benefit of all unsecured creditors between an individual and a qualified insolvency practitioner (the IP, who acts as the Trustee).So here are some of the Benefits of Protected trust deed in Scotland.
Protected Trust Deeds are a feasible alternative to debt relief options including the Debt Arrangement Scheme (DAS) and Sequestration (Scottish term for bankruptcy).
Trust Deeds work by transferring your assets to the Trustee and requiring you to make a single, manageable monthly payment from your income for at least 48 months.
Unsecured creditors are paid from the money in the Protected Trust Deed, and their remaining debt is written off at the conclusion of the Trust Deed period. Please continue reading this section to see whether Trust Deeds sound like they would be a good fit for you.
Your creditor contact will be decreased when you sign into a Protected Trust Deed, and once the Protected Trust Deed term has been successfully completed, the remaining sum of your unsecured debts will be lawfully written off.
Your creditors will not pursue you for the sums written off, allowing you to enjoy a debt-free future.
The Benefits of Using a Protected Trust Deed
- You are safe from creditors taking legal action against you.
- All regular living expenditures and household bills are covered by a single, inexpensive monthly payment.
- Creditor communication will be discontinued – your Trustee will communicate with your creditors on your behalf, relieving you of the stress of regular phone calls and upsetting correspondence.
- Interest, fees, and charges are all locked as of the date you sign your Protected Trust Deed.
- There are no court proceedings in a Protected Trust Deed.
Your home and other assets can be kept, depending on their worth and circumstances; seek legal counsel as soon as possible if you have assets you want to protect.
If you are facing legal action, require emergency assistance, and have chosen a Trust Deed as your debt solution, you can sign the Trust Deed right away.
The Trust Deed will no longer be protected by an earnings arrestment.
- You will be released from all remaining debts and the balances will be written off after successfully executing a Trust Deed.
Protected Trust Deed Disadvantages
- Your credit score may suffer as a result.
- Creditors may raise enough objections to the Trust Deed proposal to prevent it from achieving protected status.
- Before or after your discharge, granting a Trust Deed may result in you being denied credit.
- Unless the business’s articles of association allow it, you may not be permitted to operate as a director of a limited company.
In a Trust Deed, student loans are not discharged (or a Bankruptcy)
If you have assets that you would like to protect, the equity in your home and/or other assets that you own may have to be realised for the benefit of your creditors, depending on their value and your specific circumstances.
Do not hesitate to seek advice if you have assets that you would like to protect.
Your Protected Trust Deed will be recorded on the Register of Insolvencies, a publicly accessible online database of all Scottish insolvencies.
Entering into a Trust Deed may have an impact on your job or future job chances.
The Trustee in a Trust Deed has a claim on assets obtained for a period of four years from the date of the Trust Deed’s signature, for example, inheritance.
Get your IVA advice today!
We’re here to assist you. Debt counsel is now available for free online. If you seeks any kind of the IVA related help or advice contact us.