Protected Trust Deeds – Why Consider Using Them?
Protected trust deeds are applicable when a debtor is no longer able to increase their disposable income once bills and other expenses are paid. This also includes credit card payments, store cards, and can include other payments like income tax and council tax. A protected trust deed has been compared to the more well known IVA.
A protect trust deed is relevant only to Scotland residents. It is an agreement between the debtor and the creditors to agree to legally repay an agreed amount based on the full debt. The deed is managed by a trustee – qualified insolvency body regulated by law.
Eligible applicants include:
Homeowners
Tenants
Those living with family
Essentially what bothers people in debt is being harassed by their creditors. Within a protected trust deed, you are not contacted by those creditors and they also cannot enforce any legal action. People seek out options like these deeds when they cannot turn anywhere else for help.
Top advantages include:
No effect on your career path or job applications
Company directors do not need to lose their stake in a company.
Certain professions may be adversely affected by such a deed and so advice should be sought before signing a deed. Check your professional status is not affected by the deed. It is still important to ask if a credit search is initiated at the outset. For the recession hit people of Britain, two pieces of criteria can help decide whether or not a deed is needed:
1.A protected trust deed best helps debts of more than 15,000 GBP.
2.Lower than 15,000 GBP, a debt management plan may be the best option.
In either case, seek professional advice from your financial consultant or debt advisor. It is a legally binding contract so ensure that the correct path is chosen from the above two options.
No protected trust deed should be sold as a one-size-fits-all package as individual circumstances vary from one person to the other. Many in severe debt may need to go through strong consultations before a decision can be reached. In some cases, it may still be that bankruptcy is the only option.
Assets such as personal vehicles may also be included in the deed.
There are no cooling off periods with protected trust deeds so you will be liable for the full debt if payments then fail to occur. They can be extended to five years and any flexibility is based on criteria that must be discussed with the practitioner. Homeowners should get clarification on how their homes are affected following the signing of a protected trust deed.
Find out which debt solution options, including Trust Deeds, are available for you. Should you need further information on Trust Deeds ( Scotland) then call our free-phone advice line on 0800 043 7201. Protected Trust Deeds
