COVID-19: Update

The team at IVAorg are committed to keeping our free helpline open. In the space of just a few days, life has changed completely for all of us. We hope you are managing to adapt during this very difficult time and whatever happens, we are still here and will continue to give guidance, support and advice to all those experiencing financial difficulties during this uncertain time.

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Protected Trust Deeds

What is a Protected Trust Deed

A Protected Trust Deed (PTD) is a formal debt solution available only to people living in Scotland that acts as an alternative to Bankruptcy.

To qualify for a PTD you need to have;

  • Been resident in Scotland for more than 3 months.
  • Have more than 2 Creditors.

A PTD is structured around repayments based on affordability and runs for a fixed term, normally set to 4 years.

It can only be set up and administered by a licensed Insolvency Practitioner (IP) who acts as a Trustee.

The Trustee's role is to ensure that all parties adhere to the legal obligations laid out in the PTD's terms and conditions.

As part of the application process, and in order for the Trust Deed to achieve 'Protected' status, it must be advertised on the Register of Insolvencies.

For the Trust Deed to become legally binding, ie 'Protected', a period of 5 weeks must have expired from the placement of the advertisement, during which, no more than 33% of creditors (in debt value terms) must have voted to reject it, or no more than half of creditors vote to reject it, numerically speaking.

Part of the the Trustee's administrative role is to ensure the debtor repays as much of their debt as they can afford.

This will include the debtor passing ownership of any assets they own to the Trustee for the benefit of their creditors.

If the debtor is a homeowner, this may also include the debtor having to transfer their share of any financial interest in the value of their home to the Trustee, for the benefit of their creditors.

A PTD will write-off any unpaid outstanding unsecured debts when it reaches a successful conclusion.

If you live in Scotland and would like to discuss how a PTD may be able to help you regain control over your financial circumstances, then call our helpline on 0800 856 8569.

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