How the process works
Once you have decided that a Protected Trust Deed (TD) is right for you, you will be asked questions regarding your current financial situation. Based on the information you have given, a repayment amount will be agreed with you. Once proposals have been drawn up you will need to check and sign these which gives us consent to contact your creditors on your behalf and return them to your Insolvency Practitioner (IP).
6 Step Process
- When you sign (grant) a Trust Deed all your assets will be transferred to the trustee who will then manage your affairs with the aim of paying as much as is reasonably possible of the debts owed to your creditors.
- We will bring ALL of your debt together so you have ONE PAYMENT you can afford each month from your Disposable Income. This payment is paid into a separate bank (Interest bearing) for the benefit of your creditors over a period of 3 years.
- At the end of the 3 years, a dividend is paid to your creditors after the costs of the Protected Trust Deed have been paid.
- Your remaining debt is written off when a Trust Deed is signed SUBJECT TO you complying with the terms of the Trust Deed e.g. - your monthly payments (contributions) being maintained.**
- A Trust Deed will become a Protected Trust Deed when registered with the Accountant in Bankruptcy - Unless a sufficient number (1/3 in value OR 1/2 in number) of your creditors object to its protection in writing within 5 weeks of being informed as advertised in the Edinburgh Gazette
- A Protected Trust Deed is binding on ALL creditors (even those who don’t agree to it) and prevents them from taking ANY further legal action to enforce payment of the debt.
Throughout the duration of the Trust Deed you will have a dedicated Trustee who will oversee the arrangement. You pay a single amount each month into an account in your name and providing you stick to the agreement terms of your Trust Deed at the end of the Trust Deed agreement term the remaining debt will be written off leaving you completely debt free.
*A trust deed may affect your credit rating & may remain on your file for up to 6 years. A fee may be applicable depending on suitability and qualification.
** If you breach any of the terms within the agreement the trustee can apply for your trust deed to be brought to an end and your debt to be transferred back to you.
