Trust Deed in Scotland (PTD) - What is a Trust Deed?
Trust Deed in Scotland (PTD) -
What is a Trust Deed? Do you qualify?
This section covers what a PTD (Protected Trust Deed) is.
How a Trust Deed works.
The benefits and disadvantages of a Trust Deed.
What you need to do to get a Trust Deed to deal with your debts.
What is a Trust Deed?
An Trust Deed is a formal and legally binding agreement between you and your creditors.
It allows you to pay a monthly payment towards your debts, but at a level you can afford rather than the amount your creditors are asking for.
You agree to pay this monthly amount for a set period of time – usually 4 years.
After this set period of time any remaining debt will be written off.
It provides both parties with certain legal protections whilst you solve your debt problems.
Once the agreement is in place your creditors must stop all further interest and charges on your debts.
All letters and phone calls from your creditors in relation to your debts should then stop.
Once the 48 months have ended, and you have kept to the arrangement any outstanding debt included in the Trust Deed is written off.
Trust Deed's are only available if you live in Scotland. In England, Wales and Northern Ireland, an IVA is a similar solution, but it’s important to note that it has different benefits, risks and fees associated with it.
Benefits of a Trust Deed
Make one affordable monthly repayment.
Reduce your monthly outgoings inline with what you can afford.
Protects your home from creditors if you are a homeowner.
Freezes interest and charges on your debts
Stop letters and phone calls from your creditors.
Stops debt collectors and bailiffs from calling you.
Prevents further legal action and arrestment of earnings
What do I need to get a Trust Deed?
You must have two or more creditors.
You must be struggling with payments to your debts
You must owe more than £5000 of unsecured debt (credit cards, loans, overdrafts etc.)
Scottish resident. If you have left the UK or Scotland, but have lived in Scotland during the previous 12 months, you are still eligible for a Trust Deed.
Need debt advice?
Our specialists can quickly advise you of your options if you are considering a Trust Deed. Simply call the team on 0800 36 88 133.
Alternatively take the online Trust Deed test and see if a Trust Deed is right for you.
A Statutory Demand is a formal document which can be issued if you have failed to make payments to a debt. This is the first step of the legal process a creditor may use to make you bankrupt to recover their money.
Read our full guide to Statutory Demands...
When you are declared bankrupt, you surrender all your assets, i.e. possessions of value, including any interest in your home.
The Trustee must be informed of all assets, it is their decision as to what you can keep. They will arrange for their sale, using the proceeds to pay the fees, costs and expenses of the bankruptcy, before paying the creditors.
Part or all of your pension may be claimed by your trustee in bankruptcy, whether you are receiving it now or it is due in the future.
When he or she has all the information about your pension, the official receiver or your trustee will be able to tell you what part, if any, of your pension is being claimed as an asset in your bankruptcy.
At your bankruptcy hearing, a district judge will consider the bankruptcy petition to decide whether or not to make a bankruptcy order. Once a bankruptcy order is made, you are then officially bankrupt.
You and the Official Receiver attend the Bankruptcy Hearing. Creditors can also attend the bankruptcy hearing if they wish.
The Official Receiver is a civil servant in The Insolvency Service and an officer of the court. He (or she) will be notified by the court of your bankruptcy. He will then be responsible through his staff for administering the initial stage, at least, of the insolvency case. This stage includes collecting and protecting any assets and investigating the causes of your bankruptcy.
I Contacted them at 5 pm on a Thursday night,they arranged a meeting Friday morning with all the relevant bodies their because my case was the following Monday .I can't sing their praises high enough they contacted the courts same afternoon. Fantastic response, I avoided bankruptcy on the Monday and was given time to arrange an Iva. I risked losing my home,my mother and fathers home all hope seemed lost until I made that fateful phone call. I can now sleep at night.
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