This means that no further action can be taken against your account by your existing creditors.
The average Protected Trust Deed lasts for a period of 36 months.
Our advisors are here to help you with any alternative debt solution plans.
Secured debt works against the assets that you own, meaning that if you fail to keep up on repayments then these may be at risk, items include your home. Unsecured loans are not held against any items.
A Trust Deed will cover most of the debts that you have, but there are some which will not be written off. These include any secured debts such as mortgages, secured loans, student loans or fines.
We have tried to provide some more information on this website, but the best cause of action is to contact one of our advisors who will be able to talk you through the best options.
No, your Trust Deed has to be handled by a fully-trained Insolvency Practitioner (otherwise known as an I.P or Trustee).
No, it is a complex legal process that is agreed with your current creditors to repay your debts. No extra money is borrowed.
It is very important that you contact your IP immediately if your financial circumstances change for any reason. If you do not keep up your repayments then your creditors will start bankruptcy proceedings against you.
It is dependant on each individual case, and our expert advisors will help you through the process and come to the best decision.
We will detail your household income including your take-home pay and benefits and your expenditure. By deducting your expenditure from your income you are left with an amount, your ‘Disposable’ income, which is all you have left to pay back your unsecured debts. In the example below, we would expect you to make a monthly contribution to your Trust Deed of £250 to repay your unsecured creditors:
| Monthly Income | Monthly Expenditure | ||
| Your take home pay (inc. overtime) | £1,200 | Mortgage/Rent | £700 |
| Partner’s take home pay | £690 | Council Tax | £100 |
| Other income (Benefits, maintenance etc) | £100 | Water/Gas/Oil/ Electricity/Phone/Mobile | £100 |
| Food/Household/Clothing | £600 | ||
| Car Expenses/Finance | £190 | ||
| TV Lisence/Rental/Sky | £30 | ||
| Public Transport | £20 | ||
| Total household income | £1,990 | Public household expenditure | £1,740 |
| Monthly Disposable Income | £250 | ||
Yes, but don’t worry. If you are making monthly payments that are lower than the contracted amount or have missed payments then your credit rating will be damaged.
On average it should take about about six weeks to process.
In principle, a Protected Trust Deed is the Scottish equivalent of an IVA.
No, any interests or charges on your current debts will be frozen by your creditors from the commencement date of your Trust Deed.
You will be dealing directly with a licensed Insolvency Practitioner, who is the only type of financial advisor that is seen as an ‘expert’ under law. They are qualified to apply Insolvency Legislation and act as Administrators and Liquidators of companies. Some choose to provide their valuable service to help indebted individuals to sort out their financial problems without having to borrow more money.
You will not necessarily lose your house, but any equity will probably be released to help pay off your debts.