What is a Protected Trust Deed (PTD)?

Count on Solutions Scotland when it comes to Protected Trust Deeds.

One of the debt solutions we provide assistance on is a Protected Trust Deed (PTD). PTD’s are only available in Scotland; if you’re in England, Wales or Northern Ireland consider an IVA with us (which is similar). But before we dive into the advantages and disadvantages of a PTD and whether you choose protection for your debt or not (more about that later) you must fully comprehend the role of an insolvency practitioner. After all, an insolvency practitioner is at the heart of any debt or insolvency case.

“A Trustee is a person or firm that holds and administers property or assets for the benefit of a third party. A Trustee may be appointed for a wide variety of purposes, such as in the case of bankruptcy, for a charity, for a trust fund, or for certain types of retirement plans or pensions.” Investopedia (26 May 2019)

Can you afford a Protected Trust Deed?

A Trust Deed (NOT A PTD) is a voluntary agreement between you and your creditors (the people you owe money to). Simply put, you agree to pay them a consistent amount of cash towards your debts, until the debt is payed off.

And this is where the ‘Trustee’ comes in. Your Trustee looks after ALL of your assets – house, car etc. It’s up to a Trustee to solely deal with your creditors. ALL correspondence and communication occurs between the Trustee and the creditors. No more hassle!

Protection.  It is better for business.

If the trust deed is protected, creditors CANNOT touch any assets. For it to be protected, the MAJORITY of your creditors need a binding agreement in place – one that everyone is happy with. If the deed is not ‘protected’, your creditors could still legally recover the money you owe them, any way they can. They could take you to court.

When most or all of your creditors are in agreement with the terms of the initial trust deed, it becomes binding, and creditors cannot legally recover any money that is owed to them. If it is protected, your assets cannot lawfully be taken, touched or turned into cash.

If, for whatever reason, you do not come to an agreement with your creditors, don’t worry – you may try our fantastic service at Solutions Scotland.

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.