Protected Trust Deed (PTD)

If you live in Scotland and you are facing serious debt problems, a Protected Trust Deed (PTD) can help you to avoid all of the trauma of bankruptcy/sequestration. It is similar to the English IVA.

A PTD allows you to become debt free after a fixed period of three years. Because it is a legally binding agreement, you are protected from legal action by your creditors during those three years. You also benefit from new monthly payments that are based on what you can afford. These new affordable payments replace all of your current monthly repayments. Any debts remaining at the end of three years are effectively written off by your creditors. An important benefit of the PTD is that unlike sequestration, you are very likely to be able to keep your home.

Do you qualify for a PTD?

As with any debt solution, a PTD isn’t the best way forward for everyone and Debt Free Direct exists to show you which option would work best in your own particular circumstances. If you have unsecured debts of more than £10,000 and a stable monthly income then a PTD is likely to be a good choice. However, it’s important to talk to someone who understands all of your options and who will give you impartial debt advice. One of our trained advisors can give you a full assessment using our Best Advice model.

Call us free on 0800 083 1433 to find out more.
If you are calling from a mobile just let us know and we will call you straight back.

Making a PTD work for you

Once we have talked through your situation with you and a PTD has been recommended as the best debt solution, an Insolvency Practitioner will act as your PTD trustee. He or she will submit an initial proposal to your creditors and then handle all further correspondence with them. Your part is to cooperate with the trustee, pay the agreed monthly contributions, avoid further credit and say if your financial circumstances change. Once your PTD is accepted and registered, your creditors will not be able to take any further legal action and your interest will be frozen.

How much would I pay?

Because payments are based on what you can afford, they will be different for everyone. You should find that payments are significantly less than your existing minimum payments on credit cards and loans. It is important to watch out for unrealistic promises from unscrupulous firms offering PTDs. Some companies make claims for very high percentage debt write-offs and the people you owe money to are unlikely to agree this. An advisor who is honest with you about what you can achieve is far more likely to give you a successful outcome.

Find the best way forward

Remember, Debt Free Direct does not ‘push’ particular debt solutions and you can depend on us to give you best advice for your own circumstances.

Call us free on 0800 083 1433. Our phone lines are open 8:00 am to 9:00 pm Monday to Friday, 9:00 am to 5:00 pm on Saturday and 10:00 am to 4:00 pm on Sunday. You can call free for an initial chat about your own financial situation.
If you are calling from a mobile just let us know and we will call you straight back.