Protected Trust Deeds for Scottish residents in debt

Using Government legislation, designed to help Scottish residents clear debt, a Protected Trust Deed (PTD) acts as formal agreement between you and your creditors and stops all creditor demands. This enables you to pay off your debts in affordable monthly payments over a fixed period (usually 36 months).

Trust Deed FAQs:

What is a Scottish Trust Deed?

A protected Trust Deed is a formal repayment agreement between a borrower and their lenders. It allows the borrower to repay a portion of their debt at a rate they can afford.

How does the process work?

Talk to Money Management People and we’ll assess whether a Trust Deed could be the right solution to your debt problems. If it seems like it’s the right approach for you, you’ll work with our specialists to draw up a proposed Trust Deed, a formal offering detailing what you could afford to pay your lenders.

Assuming your proposal isn’t rejected, you’ll simply make your monthly payments (which will be the amount left over from your income after you’ve paid all your living costs) until the Trust Deed comes to a successful conclusion.

How much will it cost?

Your monthly payment will be based on your surplus income after allowing for your day-to-day living expenses. Your creditors will usually require that these payments are maintained for three years.

Why would my creditors accept a Trust Deed?

A Trust Deed will normally give creditors a better outcome than they would get though an alternative such as bankruptcy (sequestration). It also lets them avoid the time and expense which would be involved in taking legal action.

Furthermore, creditors benefit from knowing that the Trust Deed is being administered by a qualified professional.

What if I default on my monthly payment?

It is vital to make regular payments. In some circumstances, the period of the Trust Deed may be extended to allow any missed payments to be made up later on. If you fall behind through no fault of your own (e.g. through a change in employment), the trustee will re-assess the level of your monthly contribution and amend it appropriately.

If it seems you’re simply not co-operating, the Trust Deed will probably be terminated and you could face bankruptcy (sequestration).

What will happen to my home?
If you own your home, your normal mortgage payments will continue as normal – a secured lender (such as your mortgage provider) is not bound by the Trust Deed. You will have to release any equity in your property.

Subject to eligibility and acceptance. Debt write off applies only on completion of a Trust Deed, alternative solutions may be offered. Initial advice is free, fees payable for continuing services. Your ability to obtain credit will be affected for 6 years. Homeowners will be required to release the equity in their property.

Calls may be recorded for training and quality purposes.