A Protected Trust Deed is a voluntary agreement between you and your creditors that is available to residents of Scotland.
It allows you to agree an affordable monthly payment to repay all or part of the money you owe usually over a period of 48 months.
It is a legally binding agreement arranged and managed by an Insolvency Practitioner who acts as the Trustee.
Trust Deed Benefits
Once Trust Deed has been established and is protected , unsecured creditors cannot add contractual interest or charges to any outstanding debt.
This means that come the end of the 4 year arrangement if you have made your all payments then any remaining debt on your account is written off allowing you to start fresh.
An advantage of a trust deed is that whilst in the arrangement your assets are protected from seizure as payment for outstanding debts. What this means is that whilst paying into your arrangement your home, car and other assets are safe from seizure unlike in cases of bankruptcy.
Another benefit of a Trust Deed is that by working with your advisor they will take into account your income and expenditure to find a figure that you can affordably pay each month.
Are Your Eligible For A Trust Deed?
In order to qualify for a Protected Trust Deed in Scotland you must be a Scottish resident for at least 6 months, and have unsecured debts of over £5,000.
As soon as a trust deed becomes protected, your unsecured creditors will no longer be able to use legal recovery procedures to collect these debts from you.
Trust Deed Help & Advice
If you think that a Scottish Trust Deed could be the right solution – contact ivaconsultancy.com to speak with one of our advisers and see what’s best for you and your situation.
A Trust Deed is only available to residents living in Scotland. If you’re currently living England, Wales and Northern Ireland you may be eligible for a IVA
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