Criteria for a Protected Trust Deed?

If your creditors agree to its proposals for a trust deed, it will be protected. Trusted documents can be prepared by a financial advisor, but the proposal must be filed with your creditors by a licensed insolvency specialist.

Protected Trust Deed (PTD) is a formal agreement between you and your creditors that will allow you to repay your debts within a reasonable rate for an agreed period of time (usually a minimum of 4 years).

During the repayment period, creditors may not pursue to make additional payments or seek legal action against them. From the date of approval, creditors can no longer add interest and fees to the amount owed.

Your monthly payments will be based on affordability. At the end of the period, any remaining balance shall be written off.

What happens to my property?

If you have a property and there is equity in the property, your deed of trust will normally require that your share of the capital be paid in your agreement. This can be done by relocating your property or by a sum of third parties to pay on your behalf. The value of your capital (the difference between the value of the property and the amount owed to the insured lender) is determined at the beginning of the Deed of Trust.

What does the service cost?

The fees charged for a Protected TrustDeed (PTD) vary and will be explained before continuing. Creditors who vote for deeds of trust often limit the level of fees that your trustee can charge. Fees are deducted from their monthly contributions.

What else do I need to know?

Only a licensed Insolvency Practitioner can propose the agreement on your behalf. Your insolvency specialist will review your income and expenses to determine what you can afford to pay for your Protected Trust Deed (PTD). The single payment for your PTD will replace all monthly payments to your creditors.

Your insolvency specialist will send a proposal to your creditors detailing your plan for reimbursement. Once they have received it, they will have 5 weeks to respond. If more than one third of your creditors are not allowed to reject the proposal, your trust deed will be protected. Once your trust deed is protected, your creditors will no longer be able to pursue you or seek additional actions against you.

You will be asked to declare any inheritance or unforeseen winnings above the value of £ 500 to your insolvency practitioner. Overtime and regular bonuses will also be taken into consideration.

You cannot borrow more than £500 while you are in your Protected Trust Deed (PTD) without notifying your creditors.