Protected Trust Deed
Protected Trust Deed
A Protected Trust Deed is a debt management plan that is only available in Scotland. A Protected Trust Deed offers an alternative to Bankruptcy (Sequestration) and is designed to help people struggling to manage their debts. So, if you live in Scotland and are finding yourself buckling under the pressure of debt, a Protected Trust Deed could be the answer. A Protected Trust Deed could:
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Relieve the pressure – A trustee will take charge of the Protected Trust Deed and speak to your creditors for you, taking the weight off your shoulders
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Clear your debt in three years – Most Protected Trust Deeds last for three years and are similar to an
IVA in the UK. At the end of a set period, what you have not yet paid will be written off and you could start with a clean slate
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Clear debts of more than £10,000 – You must owe more than £10,000 in unsecured debt to be eligible for a Protected Trust Deed
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Freeze the interest on what you owe – When you are granted Protected Trust Deed your creditors will usually stop adding interest to your debts because you are actively managing your debts
A Trust Deed becomes protected when your creditors do not object to you being granted a Protected Trust Deed within five weeks of the application and prevents them from taking further action such as Sequestration (Bankruptcy in the UK). If creditors who are owed more than a third of your debts in total decide they do not want you to be granted a Protected Trust Deed it will not be protected and your creditors could file for your Sequestration. For more information and to find out if a Protected Trust Deed is right for you, fill in the form below and a debt specialist will be in touch.
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