What is a Protected Trust Deed?
A Trust Deed is an informal type of bankruptcy regulated by the Bankruptcy (Scotland) Act 1985 (as amended). It's a voluntary arrangement, which has to be accepted by two thirds of your creditors, where you undertake to do the best you can to pay off your debts.
Normally you have to be able to pay at least 10p in the £. In return, you receive protection from being bombarded by creditors or visited by sheriff officers, taken to court by the people you owe money to, or having your wages arrested. Your personal mediator - or Trustee - is a licensed insolvency practitioner, knowledgeable about the law and credible with business people.
You should, however, bear in mind that your Trustee's primary duty is to act in the best interests of your creditors. So long as you are open or honest with your Trustee, your rights are protected and your creditors are kept at bay.
Providing you keep to your side of the bargain with your trustee and your creditors and once your trust deed has run its course, you can start again without a millstone of debt around your neck.
For more information, contact our debt help team for a free consultation on 0800 138 0707.