A Protected Trust Deed is a legal process available to residents in Scotland which offers debtors an alternative to bankruptcy. In essesnce it is an official debt repayment plan that in most cases includes the freezing of interest and charges, allows a reduction in the total amount of debt owing, in some cases as much as 85% and provides you with formal legal protection from your creditors.

It helps enable individuals who cannot repay their debts to establish, a monthly repayment cyclebased on what the you the debtor can afford to pay. The Trust Deed will last for a specified period of time , usually 36 months. When the term of the arrangement comes to an end, all remaining debts are written off.

How does a Trust Deed work?

The Trust Deed will last for a specified period of time , usually 36 months. When the term arrangement comes to an end, all remaining debts are written off. All protected trust deeds are supervised by a licensed insolvency practitioner, who is responsible fully for all negotiations with your creditor base and also responsible for ensuring that you keep to the terms associated with yourTrust Deed.

Alternative Debt Solutions

Trust-deed-advice.com offer Debt Management Programs. Debt management enables you to pay one single lower monthly payment to all your unsecured creditors, taking away the stress and worry of every day dealings with creditor phone calls and letters.

Once your creditors can see a regularised cycle of monthly payments being made to them they will be more than happy to deal directly with TDA and we will negotiate the freezing of charges and interest on all your creditor accounts.

The advantages of a Protected Trust Deed

	The trustee handles all correspondence from creditors, relieving you from the pressure of debt.
	A Protected Trust Deed is much more flexible and costs less to administer than sequestration (bankruptcy).
	With a Protected Trust Deed, your creditors cannot to add further interest, charges, or take any further legal action against you.
	You will in most cases still be able to hold certain public offices posts within the UK.
	You will in most cases still be able to remain self-employed or if required continue to serve as a director of a company, subject to clarification with your trustee.
	Scottish Protected Trust Deeds normally last 36 months, after that period any remaining debts will effectively be written off completely .
	Information regarding Protected Trust Deeds are not published unlike sequestration (bankruptcy).

The disadvantages of a Trust Deed

	Any current arrestments and other due diligence continue to be fully effective. Local authority and Councils who carry out earnings / wage arrestments will agree to lift arrestments upon protection of the Trust Deed.
	You cannot be a company director of a limited company unless or until the company’s Article of Association state otherwise or are changed to affect this.
	This new arrangement is binding on you as well asall your creditors. If you were to default on the arrangement then the Insolvency Practitioner can petition for your Sequestration (bankruptcy)
	Entering into any arrangement with your creditors will in general affect your credit rating.
	Creditors are not obliged by law to accept a proposal for a Trust Deed. However, the Trustee will negotiate with every creditor. Unless creditors, who are owed more than one third of the total debt object (which is very unusual), the Trust Deed will become protected and effective.

For more information about our Trust Deeds then please click here