What is a Protected Trust Deed?

Count on a Trusted Trustee

One of the debt solutions Milton & Sterling Ltd provide is a Protected Trust Deed (PTD). PTDs are only available in Scotland; if you’re in England, consider an IVA with us (which is similar). But before we dive into the advantages and disadvantages of a PTD and whether you choose protection for your debt or not (more about that later) you must fully comprehend the role of a trustee. After all, a trustee is at the heart of any debt or insolvency case.

“A trustee is a person or firm that holds and administers property or assets for the benefit of a third party. A trustee may be appointed for a wide variety of purposes, such as in the case of bankruptcy, for a charity, for a trust fund, or for certain types of retirement plans or pensions.” Investopedia (26 May 2019)

When debt gets bad – you can trust a trust deed

Trust Deeds are commonly used to get you out of serious debt. You may be worried about having to sell your home, your business is at risk of going under, you owe £5000 or more, or your creditors are threatening you with court action. When you sign a trust deed through Find a Debt Expert, you are agreeing to make monthly payments (which you can afford over a fixed period of time) of up to four years. Once you’ve cleared all outstanding payments, any remaining debts will be written off. You will be debt-free.

Can you afford to trust an unprotected trust deed?

A Trust Deed (NOT A PTD) is a voluntary agreement between you and your creditors (the people you owe money to). Simply put, you agree to pay them a consistent amount of cash towards your debts, until the debt is payed off.

And this is where the ‘trustee’ comes in. Your trustee looks after ALL of your assets – house, car etc. It’s up to a trustee to solely deal with your creditors. They may ask you to sell whatever assets you have to cover the debt. ALL correspondence and communication occurs between the trustee and the creditors.

Protection. It’s better for business

If the trust deed is protected, creditors CANNOT touch any assets. For it to be protected, the MAJORITY of your creditors need a binding agreement in place – one that everyone is happy with. If the deed is not ‘protected’, your creditors could still legally recover the money you owe them, any way they can. They could take you to court.

When most or all of your creditors are in agreement with the terms of the initial trust deed, it becomes binding, and creditors cannot legally recover any money that is owed to them. If it is protected, your assets cannot lawfully be taken, touched or turned into cash.

If, for whatever reason, you do not come to an agreement with your creditors, don’t worry – you may try to agree upon an unprotected trust deed with Milton & Sterling Ltd voluntary. In this case you have five weeks to appeal.

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.