A PTD (Protected Trust Deed) is the Scottish equivalent to an IVA (Individual Voluntary Arrangement). If you live in Scotland and are suffering from a severe amount of debt and it looks unlikely you will be able to clear it soon, then a Protected Trust Deed may be a way out.
PTDs are typically over 36 months (3 years) which is much shorter than the UK equivalent IVA. As a form of insolvency, if agreed, creditors have to stop interest and charges, contact with you and at the end of the term, the remaining debt will be written off.
Protected Trust Deeds are usually over a fixed period and at fixed monthly payments, which makes them ideal for people with fixed or steady incomes and expenses, able to commit for what is typically 3 years.
At Fresh Start UK, we use a panel of specialist companies to carry out and administer the insolvency account, such as Protected Trust Deeds (PTDs), Individual Voluntary Arrangements (IVAs), Sequestration and Bankruptcy. These businesses are fully licenced and regulated.
The Insolvency Practitioner working on your case for you will negotiate the best available discounts on your debt. These discounts are only given upon successful completion of a PTD. Protected Trust Deeds are typically much shorted than the UK Individual Voluntary Arrangements (IVAs) usually over only 3 years. It is important to say that although over a typical 3 year basis, credit rating is still heavily effected for 6 years.
If you have any amount of unsecured debt and you are finding it hard to keep to payment or have already fallen behind then a Protected Trust Deed may be worth considering.
We have provided an example of a typical PTD below:
The above is an example based on a typical client with one of the PTD Providers on our panel. Protected Trust Deeds are subject to Scottish Law and therefore subject to legal process and approval, so eligibility isn’t guaranteed. It is important to know that you may also be expected during the course of the agreement to remortgage and release the equity to pay off some or all of the debts.
Insolvency Practitioners will charge a fees for their work. We have provided an example based on the example used above.
Example of Fees (based on £30,000 total debt)
A Protected Trust Deed is legally binding and failure to maintain payments can fail the agreement and may lead you open to Sequestration (Bankruptcy). Any discounts that had been agreed would also be made invalid and the full balances plus interest may be due. Ensuring you have the correct advice and guidance is therefore vital, which is why we ensure we only work with some of the industries leading Companies.
For more Advantages and Disadvantages of a PTD, click here
If you are considering a Protected Trust Deed or any other form of Insolvency or Debt Solution then we would be happy to hear from you. For further information or just some friendly help call either 08009 247 244 or 01482 247 999. We have also provided a link to the Scottish Insolvency Service Site – here.
Subject to eligibility and acceptance. Conditions apply. Debt write off applies only on completion of a PDT (Protected Trust Deed) alternative Debt Solutions may be offered. Each PTD (Protected Trust Deed) application is assessed on an individual basis, once the preliminary work is carried out the case is passed to an Insolvency Practitioner at one the companies on our panel to administer. No advice is provided by Fresh Start UK. Fees payable for continuing services. Your ability to obtain credit will be affected for 6 years. Homeowners may be required to release the equity in their property. Calls may be recorded.