Protected Trust Deeds Scotland

What are they?

Protected Trust Deeds or PTDs are formal and legally binding contracts with your creditors that restructure your debt repayments over a fixed term. The restructure reduces your repayments to an greed, affordable level. Once all of your payments have been made, any remaining debt is completely written off. Once a Trust Deed has been agreed, your creditors are no longer allowed to contact you provided you maintain your repayments.

First of all, your monthly household income is evidenced by payslips, contracts, benefit awards or company accounts. We then know precisely how much money comes into a household each month. We then calculate your expenditure. Certain items of your expenditure are easily evidenced. Your monthly mortgage or rent payment can be proved with a statement or contract. The same is true for things like your car insurance and mobile phone bills. For other items, creditors use pre-agreed guidelines for the things that you have to spend money on each month like transport and food. Using a combination of evidenced items and guideline amounts, your monthly expenditure can be easily and fairly calculated. 

We should also point out here that guidelines are precisely that and are not hard and fast rules. There are many people who have unique circumstances which can be taken into consideration. It is simply a case of understanding and communicating them correctly to your creditors.
Once we have these two figures, we deduct your expenditure from your income and what remains is referred to as disposable income and is what your creditors will expect you to pay them each month. 

Your other assets will also be assessed for whether or not they need to be included in the Trust Deed.
 

To find out how much a trust deed will cost you, click here. If you have more questions, please call us in confidence on 0141 348 7900.

Trust Deeds will take your assets into consideration. Homeowners will possibly be required to revalue and remortgage their homes and any return on investments will need to be included in the overall settlement that your creditors will receive.