Protected Trust Deeds
(Scotland Only)
Protected Trust Deeds use government legislation in Scotland to enable people who are in debt and struggling financially to become debt free. You will pay an agreed affordable monthly contribution and then at the end of the trust deed period, normally 36 months, your remaining debt will in effect be written off. A Protected Trust Deed prevents your creditors from adding further interest and charges and also from taking any further action against you.
Advantages of a Protected Trust Deed
- The pressure of being in debt is reduced as all correspondence, including any queries from creditors, is handled by the Trustee
- A Trust Deed is usually more flexible and costs less to administer than sequestration (bankruptcy)
- It also allows the debtor the right to hold certain public offices - which would not be the case with sequestration.
- It may be possible for companies to continue trading and individuals to retain their directorships.
- It is not made public as information is not published (unlike sequestrations/bankruptcy).
- Interest is frozen
- Monthly payments are set at what you can afford
- You will not automatically lose your house or other assets, although the creditors will usually want some of the equity in your house.
Disadvantages of a Protected Trust Deed
- You will not be allowed further credit while on a Protected Trust Deed
- If you fail to keep up the agreed monthly contributions then your assets may be at risk and sequestration (bankruptcy) proceedings could start against you.
- Your credit rating will be effected by entering into a Trust Deed.
Contact Debt Advisory Service
For more information on Protected Trust Deeds, please contact us for debt advice today on 08000 191 278, Email us at enquiries@debtadvisoryservice.co.uk or simply fill out our Debt Advice Enquiry Form.
