A Protected Trust Deed is sometimes referred to as a PTD. This is a formal, legally binding agreement between you and your creditors. This solution is only applicable for residents of Scotland; and is a government approved method of resolving debt. It is an agreement between you and your creditors that can enable you to repay your debt at a rate that you can afford, however this is subject to your creditors approval and this cannot be guaranteed. The PTD is a solution that can be used to avoid Sequestrian – the Scottish equivalent of bankruptcy
To get a PTD approved at least half the number of your creditors, representing at least two thirds of the value of your debt must agree to the proposal before it is accepted. Burgess Bowen Financial Management works with one of Scotland’s leading Insolvency firms who will be able to tell you if your creditors are likely accept a PTD proposal from you.
Can any of my debt be written off?
In short, Yes. The Insolvency Practitioner will help you propose to your creditors a Trust Deed structure so that you only pay what you can afford, and not what your creditors ask you to pay. Once the Trust Deed becomes protected you will make a payment for a fixed period of time, normally 3 years. After making the agreed payments it is likely that some of the original debt will remain unpaid. At this stage the creditors are legally obliged to write off these remaining debts. The amount written off at the end of the PTD terms depends completely on what you can afford and what your total debt balance is.
Benefits of a PTD
- A Protected Trust Deed puts you in control of your finances
- An PTD offers you protection from your creditors
- Most PTD’s are arranged for 3 years
- All interest & charges are frozen immediately upon the Trust Deed becoming Protected
- It can apply to business owners, homeowners or tenants, couples or individuals
- With a PTD there is no court involvement
- When the Protected Trust Deed is completed, the remaining unsecured debts included will be written off legally under the terms of the arrangement
- Is a real alternative to avoid Sequestrian
Do I Qualify for a PTD?
Burgess Bowen’s team of experts will assess every case independently. You will need to have 3 or more creditors There is no pre-determined level of debt, or minimum monthly payments, required to allow a trust deed to proceed. Every trust deed proposal is specific to individual circumstances. The appropriateness of a trust deed will be based on a number of factors including assets, debt due to creditors, income and expenditure.
You could feasibly enter into a trust deed even if you have no disposable income, but normally only circumstances where you have assets which can be realised to make contributions to your creditors e.g. equity in your home to qualify.
You may enter into a trust deed where the only contribution is from a third party, such as a member of your family or a friend.
How can Burgess Bowen help with a PTD?
Burgess Bowen Financial Management is a leading debt solution provider; we aim to offer expert advice on managing your debts. The services we offer to you are always individually tailored to suit your specific financial circumstances. If you meet the criteria for a Protected Trust Deed (PTD) then we will offer you the following with our PTD Advisory Service:
If you decided to proceed with our PTD Advisory service, Burgess Bowen will:
- Provide you with a PTD Advisory Service pack; this will fully explain the process & conditions of the PTD. You will be required to provide proof of your household income & outgoings, supply all information of your creditors and debt details, and if applicable any assets that you may have. Our expert advisors will assist you throughout this process.
- Upon Burgess Bowen receiving all your documentation, we shall review this and forward onto our nominated Insolvency Practitioner (IP) who will liaise with your thereafter.
- Burgess Bowen will communicate with your Insolvency Practitioner to ensure they have all the relevant information to process your application.
Other factors to consider:
If your circumstances change, and your nominated Insolvency practitioner can’t get creditors to accept the amended terms, the PTD is likely to fail. You will still owe your creditors the full amount of what you owed to them at the start, less what has been paid under the PTD.
You must continue to make payments in full towards your household expenses such as: Rent or Mortgage, Council tax & Utilities such as your water, gas and electric. Only unsecured debts within the PTD arrangement may be written at the end of its term.
Your credit rating maybe impacted for up to six years from when the PTD has been completed.
When you initially apply for the PTD Advisory Service you will pay an initial fee to Burgess Bowen Financial Management to cover our costs for reviewing your financial circumstances, our professional services and for passing your case to our nominated Insolvency Practitioner. You can see our PTD Advisory Service Terms and Conditions here.
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