Ideal for:
- Residents of Scotland with unsecured debt of at least £10,000
- Minimum of 2 separate creditors
- Disposable income of at least £125 a month (this may need to be larger depending on size of debt)
How it works:
A Protected Trust Deed is a legally binding agreement whereby your client agrees to make one monthly payment at a fixed amount, and surrender any key assets (e.g. their share of equity in their home, car, investments) to a Trustee for a fixed period - usually 3 years - after which any remaining debt will be written off.
An Insolvency Practitioner will prepare the Trust Deed proposal based on your client's assets and liabilities, and once signed by your client, will send it to each creditor. Provided that no more than one third in value or a majority in number of the creditors object to the terms proposed, then the Trust Deed will become 'Protected' binding all creditors to its terms.
Benefits:
- Your client will pay one monthly repayment
- All pressure from creditors is removed, and we will deal with all creditor correspondence and queries
- All interest is frozen
- After completion of a Protected Trust Deed, your client is completely debt free from the debts that were included in their Protected Trust Deed.
The Facts:
- Your client may be forced to sell their home if creditors cannot be paid in full from other sources
- Only those creditors who agree to its terms are bound by the Trust Deed, so any creditors who do not agree could potentially still take action against your client
- A monthly administration fee is charged and is taken from your client’s monthly contributions. The fee we charge is agreed with your client’s creditors and will be fully explained to your client before they commit to this solution
Need more information? Read our Questions & Answers on Protected Trust Deeds.
