Protected Trust Deed (PTD)

A Trust Deed is a voluntary arrangement for Scottish residents that allows you to come to a legally binding arrangement with your creditors to repay part, or all of what you owe. We can assess if a Trust Deed is suitable for you as not everyone is eligible. For instance, you must be residing in Scotland for over 6 months and have regular household income.

If you live in England, Wales or Northern Ireland please refer to our Individual Voluntary Arrangement (IVA) page.

It is important that you consider the features and benefits of a Trust Deed. To understand if it’s the right option for you, here is some key information to help.

Once a PTD is accepted, you will benefit from:

Lower monthly repayments to your creditors based upon what you can afford.
A fixed agreement usually lasting 4 years, after which any remaining unsecured debts could be written off depending on your circumstances.
Protection from legal action by creditors, (once your creditor agree to the Trust Deed).
Frozen interest and charges.
No more calls from creditors. Your creditor correspondence will be handled for you.
A Trust Deed may be available as a debt solution if you live in Scotland or the Highlands and Islands.

Things to consider:

If you don’t stick to your agreed terms the trustee can apply for your Trust Deed to be brought to an end and your debt will be transferred back to you. You may then be at risk of bankruptcy.
If you are a homeowner you will be expected to release any positive equity for the benefit of your creditors.
A Trust Deed will appear on your credit file for up to 6 years from the date it commences. During this time it may be difficult for you to obtain credit and you may be subjected to higher rates of interest.
An PTD will appear on your credit file for up to 6 years from the date it commences.
Creditors do not have to approve a Protected Trust Deed.
Any unsecured debts that were not included would remain outstanding.
A Trust Deed will be recorded and entered on to a public register.

Example of a Protected Trust Deed

Total Debt Level: £17,000
Debt Repayments BEFORE PTD: £650 per month
Monthly Payment reduction: £500 per month
New PTD Monthly Payment: £150 per month
Proposed Debt Write Off Amount: £9,800 

This example is based on a 48 month Protected Trust Deed and is for illustration purposes only. Trust Deeds’s are subject to eligibility and Approval. Your results will vary based on your personal situation.

Get advice before you apply

Speak to us before taking out a Protected Trust Deed to make sure it’s the best option for your needs. If we think a PTD is the right option for you, we will help prepare your application and refer you to an insolvency practitioner who will set up the Trust Deed for you.

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