People living in Scotland that are suffering with a serious debt problem may find the answer to their quest for debt help in the form of a Protected Trust Deed.
Specifically available for debt help in Scotland, a Protected Trust Deed acts as an alternative to bankruptcy. It allows an individual who is struggling with overburdening personal debts the opportunity to reach a new agreement with their creditors over a fixed repayment term, normally set to 3 years.
During the agreed term, the applicant gives their creditors the assurance that they will repay whatever they can afford, after all their personal living costs have been accounted for.
After the fixed term has been successfully completed, the Protected Trust deed is brought to a close, with any outstanding balances from the original debts being written-off by the creditors.
A protected Trust Deed therefore enables someone who is experiencing a severe debt problem the chance to receive debt forgiveness of up to 90%.
A Protected Trust Deed is a legally binding formal agreement, which must be administered by a licensed Insolvency Practitioner. During the arrangement the Insolvency Practitioner takes on the role of a Trustee, ensuring that all the terms of the original Deed are fulfilled.
As part of the arrangement the applicant must surrender any assets they own to the Trustee, who must then seek to dispose of the assets in a manner best suited to the interests of the creditors. This can include the compulsory selling of property to release available equity to the creditors.
Last year Protected Trust Deeds provided debt help to over 7,000 Scots, which shows without doubt it remains a significant weapon in the war on personal debt in Scotland.
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