Advantages and Disadvantages of a Protected Trust Deed (PTD)

Protect your future, call us today!

So not only have you agreed that a Protected Trust Deed would be best to suit your needs, but you’ve gone that extra step and wisely chosen a Protected Trust Deed (PTD) with
Solutions Scotland, Scotland’s home for debt advice.

Although you’ve made a safer legally binding agreement, there are still, like anything, pitfalls to avoid. But the pros significantly outweigh the cons to individuals with the right circumstances. Come and chat with Solutions Scotland today, we’ll advise you what’s best.

Enjoy the advantages of a PTD:

  • Don’t want to deal with your creditors (the people you owe money to)? Then you don’t have to, and they can no longer contact you. We will easily sort that!
  • It takes around 4 years for a trust deed to come to an end – by then most of your debts will have been cleared and you won’t have to pay them back.
  • You are not legally prevented from borrowing money but it still may prove tricky with some providers & you cannot look for major credit above £500
  • You are in your rights to apply to the Accountant in Bankruptcy (the Scottish government agency responsible for administering the process of personal bankruptcy and corporate insolvency) to stop your creditors taking any steps to recover the money you owe them. This lasts for 6 weeks, ask our advisors more about this!
  • Stop legal action
  • Keep your home and car
  • Stop deductions straight from your earnings or wages
  • Stop being evicted due to rent arrears
  • As you have made your debt more affordable, and you can’t touch it – debt instantly becomes more manageable.
  • A PTD may be a formal debt agreement – but you’ll never have to appear in court.
  • While you may have an essential vehicle worth less than £4,000 (unless finance is secured against the vehicle you generally get to maintain the car & the payments as normal)

Unfortunately, there are downsides to not being protected:

  • A protected trust deed could affect your career – some organizations may look at your personal credit file when applying for a job & on rare occasions some places or employment may ask you to do this annually. Just be honest!
  • There’s nothing worse than having a bad credit rating and a protected trust deed will affect your rating for six years.
  • Four years is a long time and you will have to pay regular debt contributions for this time.
  • You can’t be the director of a company unless your protected trust deed allows it. Speak to our advisors for the implication if you are.
  • Enjoy a windfall or some much-needed inheritance? Be careful that your insolvency practitioner doesn’t use it as funds towards your debt – remember if you don’t cooperate with your insolvency practitioner, they can take steps to make you bankrupt.

Some of this information may come as a surprise. It may even scare you. Remember Solutions Scotland are here to help and we’ll do everything we can to make your debt payment package as stress-free as we can on you and your family. Before you choose your way to pay consider how it will affect your job, your property and even your family. Make it easier on yourself by getting in touch with Solutions Scotland today on 0141 739 8180

Solutions Scotland is a trading style of Milton & Stirling Ltd, Company Number SC587851 – Solutions Scotland, 78a Stanley Street, Glasgow, G41 1JH. DPA number ZA431921

Milton & Stirling Ltd are an Appointed Representative of MichaelAlan Ltd who are authorised & regulated by the Financial Conduct Authority, FRN 690939.

As part of our free service, we’ll review your financial situation, explain the available options and recommend a debt solution which is suitable for you. The risks of all suitable solutions will be explained clearly and if you decide to go ahead with a debt solution we will refer you to one of our trusted providers who specialise in the management of that debt solution. We’ll be paid for introducing you or for the preparatory work we do, depending on your debt solution fees may be payable if ongoing services are provided. Read about fees and key information in our terms & conditions. To find out more about managing your money and getting free debt advice, visit Money Advice Service , an independent service set up to help people manage their money.