Protected Trust Deeds
What are Protected Trust Deeds?
A Protected Trust Deed is legislation, brought in by the Scottish Government and is available to anyone who lives in Scotland. A Trust Deed is an alternative to Sequestration – also known as bankruptcy. A Trust Deed lets people who are unable to pay their debts a manageable, reduced monthly payment, with some of the debt legally written off. (this is what is known as debt forgiveness). A trust deed will typically last four years (5 years is an option depending on your situation).
Your Trust Deed is supervised by a licensed insolvency practitioner. The practitioner is responsible for all negotiations with your creditors and also to ensure you keep up with your payments towards your Trust Deed. Once the trust deed is protected, all future interest is legally frozen and the creditors are no longer allowed to contact you with nasty phone calls or letters through the mail.