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;

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

Legislation states that a PTD can only be set up and administered by a licensed Insolvency Practitioner (IP), with the IP acting as the Trustee for the duration of the arrangement.

The Trustee's role is to ensure that all parties adhere to their legal obligations, as 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 the outstanding balances of all unsecured debts included in the arrangement 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.