What is a protected Trust Deed
A Protected Trust Deed is similar to an IVA and is only available to Scottish residents. It involves new Scottish government based legislation to tackle the growing consumer debt help in Scotland, which will allow and individual with over £6,500 of debt, to pay it back over a fixed amount of time. The monthly payments are based on what you can afford to pay, and the remaining debt can be written off (Up to 75%).
What's involved in a Protected Trust Deed
To apply for a Protected Trust Deed, you will need to find out how many creditors you owe money too, and what you think you can afford to pay each month. The information will be handled by a Trustee who will put together a debt repayment proposal for your lenders to approve, then handle all the paperwork and deal with your creditors directly. As you are entering a Protected Trust Deed, you creditor by law must feeze all interest on your debt. Any letters or phone calls will cease, and your creditor can be fined if he/she breaks the agreement.
When you enter into a Trust Deed, you are entering a contract to pay your debts on time at the reduced rate. If you have any equity in your home, your creditor might be entitled to it, or if you get access to large amounts of cash, they can apply to get this also.
Trust Deed Advantages
Your dedicated Trustee will deal with all your creditors. No more phone calls or letters.
A Protected Trust Deed costs less to set-up and administer than an IVA or bankruptcy.
Your creditors will have to freeze all interest and won't be allowed to hasstle you.
You will still be able to hold public office.
If you are self employed or a director of a company, you'll still be eligable.
You pay back your debt over 3 years at what you can afford, and the rest is written off.
Your financial information will not be published.