PROTECTED TRUST DEED (PTD)
SCOTLAND ONLY
A PTD is a formal solution available in Scotland for individuals who owe more than £5000. It is a legally binding agreement between you and your creditors that allows you to repay what you can afford, and the remainder of your debt is written off once the agreement is completed.
Benefits
- You pay single monthly payments based on what you can afford.
- Interest and any additional charges on your debts are stopped once your PTD is accepted.
- A PTD includes most non-priority or unsecured debts such as personal loans, credit card debt, and some student loans and fines (note that student loans may not always be included, depending on the specific circumstances).
- Once your final payment is made, the remaining debts is written off.
Risks
- PTD is recorded on the public register of insolvencies for at least 5 years.
- This will remain on your credit file for 6 years from the date PTD starts, affecting your credit rating and making it harder to obtain credit.
- You may be asked to sell any assets valued over £1,000 to contribute to your debt repayment.
- If you own property, you might need to release equity from it to pay towards your debts.
- Items acquired through hire purchase agreements may be affected, and you might need to return these items or mane arrangement for their repayment.
