Advantages & Disadvantages of a PTD

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So not only have you agreed that a Trust Deed best suits your needs, but you’ve gone that extra step and wisely chosen a Protected Trust Deed (PTD) with Find a Dept Expert. Although you’ve made a safer legally binding agreement, there are still, like anything, pitfalls to avoid. But the pros significantly outweigh the cons. Come and chat with Find a Dept Expert today, we’ll advise you what’s best.

Enjoy the advantages of a PTD:

  • Don’t want to deal with your creditors (the people you owe money to)? Then you don’t have to, and they can no longer contact you.
  • It takes around 4 years for a trust deed to come to an end – by then most of your debts will have been cleared and you won’t have to pay them back.
  • You are not legally prevented from borrowing money (for instance obtaining a mortgage or credit card, or for a hire purchase scheme) but it still may prove tricky with some providers.
  • You are in your rights to apply to the Accountant in Bankruptcy (the Scottish government agency responsible for administering the process of personal bankruptcy and corporate insolvency) to stop your creditors taking any steps to recover the money you owe them. This lasts for 6 weeks.
  • As you have made your debt more affordable, and you can’t touch it – debt instantly becomes more manageable.
  • A PDT may be a formal debt agreement – but you’ll never have to appear in court. While you may have to sell some assets, you’re usually able to keep one essential vehicle worth less than £3,000.

Unfortunately there are downsides to not being protected:

  • An unprotected trust deed could affect your career – some organisations won’t even employ you.
  • There’s nothing worse than having a bad credit rating and a trust deed will affect your rating for six years.
  • Selling sentimental items can be heart destroying – you may have to sell a lot more than this, for instance, your home.
  • If you’re self-employed the Trustee is within their rights to get someone else to run business – in a worst case scenario or the Trustee could sell the business.
  • Four years is a long time and you will have to pay regular debt contributions for this time.
  • You can’t be the director of a company unless your trust deed allows it. Enjoy a windfall or some much-needed inheritance? Be careful that your Trustee doesn’t use it as funds towards your debt - remember if you don't cooperate with your Trustee, they can take steps to make you bankrupt.
  • Customers entering a PTD will have their details added to the Register of Insolvencies.
  • Debts not included in the PTD will remain outstanding
  • Restrictions on expenditure
  • If the PTD fails, suspended interest could be added to the debt is missing.
  • Lenders do not need to approve the Protected Trust Deed

Some of this information may come as a surprise. It may even scare you. Remember Find a Dept Expert are here to help and we’ll do everything we can to make your debt payment package as stress-free as we can on you and your family. Before you choose your way to pay consider how it will affect your job, your property and even your family. Make it easier on yourself by getting in touch with Find a Dept Expert today at –  on 0161 694 2650 or use our Debt Calculator.

Find a Debt Expert is a trading style of Milton & Stirling Ltd, Company Number SC587851 – Solutions Scotland, 78a Stanley Street, Glasgow, G41 1JH. DPA number ZA431921

Milton & Stirling Ltd are an Appointed Representative of MichaelAlan Ltd who are authorised & regulated by the Financial Conduct Authority, FRN 690939.

As part of our free service, we’ll review your financial situation, explain the available options and recommend a debt solution which is suitable for you. The risks of all suitable solutions will be explained clearly and if you decide to go ahead with a debt solution we will refer you to one of our trusted providers who specialise in the management of that debt solution. We’ll be paid for introducing you or for the preparatory work we do, depending on your debt solution fees may be payable if ongoing services are provided. Read about fees and key information in our terms & conditions. To find out more about managing your money and getting free debt advice, visit Money Advice Service , an independent service set up to help people manage their money.

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For independent advice on how to deal with creditors with regards to Insolvency Services see https://www.gov.uk/government/organisations/insolvency-service