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Can I do a protected trust deed (PTD)?

Trust deeds and protected trust deeds are available only in Scotland. In a trust deed, you pay back an agreed amount of your debt over a fixed period of time.  Only the creditors who agree to the terms of your trust deed are bound by the arrangement, unless it becomes ‘protected’. Protected trust deeds (PTDs) are a lot more common than ordinary trust deeds. However, if enough of your creditors object, they can stop a trust deed from becoming protected.

A PTD lasts for at least four years. As, long as you have made the agreed repayments, the rest of your debt will be written off at the end. A PTD is a formal arrangement, which has to be set up by an insolvency practitioner (IP).

A PTD can be a good option if it would take you longer than four years to pay your debts back, but you do not want to consider applying for bankruptcy. You usually need to have at least £8,000 of debt and some spare money to offer to your creditors each month for a protected trust deed to be a realistic option. 

My Money Steps will tell you if a PTD is suitable for you, and can help you to set one up if so.  Start My Money Steps to find out.


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