What is a PTD?
A PTD (also known as a trust deed or Scottish trust deed) is a Scottish debt solution which is similar to an IVA.
Once signed a PTD is a legally binding contract between you (the Customer) and the people who you owe money to (the Creditors), which is arranged and overseen by a Licensed Insolvency Practitioner (the Trustee/us).
The purpose is for you to reach a compromise with your creditors and avoid the consequences of entering sequestration (the Scottish equivalent of being made bankrupt). The agreement will involve you paying an agreed percentage of your debts through affordable monthly contributions to the Trustee, your creditors agreeing that they will write off the rest of your debts.
At the end of the PTD term (usually five years), once you have made your final contribution into your PTD, the Trustee will issue you with a certificate which confirms your compliance with your PTD and the debts in your PTD are written off.
Unlike the informal Debt Management products, a PTD is a legally binding contract between you and your creditors – so as long as you do everything which you agree to do in your PTD, then your creditors cannot continue to chase you for the amounts due and file for sequestration (the equivalent of being made bankrupt).
Who can benefit from a PTD?
A PTD is available to all individuals, sole traders and people in partnerships who are experiencing creditor pressure such as demands and threats of legal action and who are living in Scotland. If you live in England, Wales or Northern Ireland then the Scotland Rules! section of our website does not apply to you – please instead see the IVA and Debt Solutions pages for further information.
If you live in Scotland, are struggling to pay your debts and don’t have enough surplus money to keep all of your creditors happy, if your debts are causing you stress, then a PTD could be for you.
How does a PTD work?
A document called a Trust Deed is put together which outlines your personal financial position and what you can afford to pay to the Trustee each month. This Trust Deed is sent to your creditors for them to review what is being proposed and then decide whether or not they accept. So long as no more than half of your creditors (by number) or one third (by value of claims) reject your Trust Deed, it is approved and becomes Protected (giving the name Protected Trust Deed) and all of your creditors are bound by its terms – this means that they can no longer chase you for the amount owing, ask you for additional payments or charge interest on the debt.
So long as you keep up your end of the bargain, pay the monthly amounts due and comply with all other terms of the Trust Deed, once your final payment is made you will be fully discharged from all debts included within your PTD and you will be debt free.
Interested? Get in touch today!
So, you are interested in a PTD and you think that it might be the right option for you.
If you use our Save Me request form, this will allow us to give you best advice, by phone at a convenient time for you.
Alternatively, you can give us a call on 0808 164 3750 (Freephone) and we will be happy to have a chat with you.
When you speak with one of our DebtChampion advisers you will be made aware of all the do’s and don’ts, maybes and what if’s. It is our job to make sure you are advised of the best solution for dealing with your debts, whether or not it is a product which we can offer.
Please feel free to spend as much time as you like having a look around our website if you would like to know a little more about us.