There are some protected trust deed questions which we are asked more often than others from people who are considering entering the debt solution.
What's A Protected Trust Deed?
A Scottish debt solution which helps people avoid bankruptcy by allowing them to repay a percentage of their debt over 4 years. At the end of the 4 years any debt which is still remaining will be written off.
Cost To Enter Protected Trust Deed?
While a protected trust deed does have fees attached these can vary, however most people don’t notice these because they are included in the monthly payment. Where protected trust deed fees can be a problem is when someone comes into extra money or assets and have to repay the full debt and fees.
How To Enter A Protected Trust Deed?
Once someone has spoke to Debt Support Trust and we’ve assessed a trust deed as the best solution we put them in touch with someone to manage it. An insolvency practitioner is needed to run the trust deed from start until the end.
What Happens To My Assets?
People entering a protected trust deed are allowed to have a car when entering a protected trust deed but most other assets such as equity in a property must be realised. This is done by either re-mortgaging or the trustee selling the property. This is one of the reasons it’s important to seek professional debt advice.
Will A Protected Trust Deed Affect My Job?
No. Entering an protected trust deed generally doesn’t impact on employment although it’s always best people check their employment contract if they are concerned.
Will It Affect My Credit Rating?
Yes. A default is added to the credit rating of anyone who has entered a trust deed and it take 6 years for the default to be removed.
Will A Protected Trust Deed Affect My Partner?
Debt is personal so it can only impact on the person who’s name is on the debt. Entering an protected trust deed can impact on a spouse or partner if they have joint debts or assets. Only half of an asset could be included and most likely the solution will just be extended for another year.