Protected Trust Deed (PTDs)
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If you can’t afford to repay your debts in full, a protected trust deed (PTD) allows you to repay what you can over an agreed period of time. Once successfully completed, the balance is written off.
Complete our free debt advice tool to see if you qualify for a PTD.
If you’re struggling with unmanageable debt, and live in Scotland, a trust deed could allow you to take back control.
If it’s unlikely you could repay all your debts, a trust deed allows you to repay what you can over a fixed period (normally 4 years). Your monthly payment is based on what you can genuinely afford to pay. If you own any assets, the Cleanslate® team will let you know if these are likely to be affected. Once you have successfully completed your trust deed, the remaining balance on your debts is written off.
Cleanslate will contact your creditors on your behalf to make them aware you have signed a trust deed. One of the many advantages of this solution is that, once approved, you will gain legal protection from creditor action.
If you would like to understand how a trust deed could work for you, the friendly advisers at Cleanslate are there to help. If you wish, they will review the online debt advice application with you and advise on the best route forward.
How do you apply for a Protected Trust Deed?
Before applying for any debt solution, from any provider, you first need to get debt advice. You should never start a debt solution without first knowing all the options.
It’s impossible to enter a solution with a regulated organisation without getting debt advice first, so any firm that offers to enter you into a solution straight away is probably unregulated and should be avoided.
Most providers will need you to book a telephone appointment so they can give you initial debt advice. These can be lengthy – usually an hour or more – and not everyone is comfortable discussing their situation with a stranger on the phone. At Angel Advance, we recognise that this can, for some people, be a barrier to getting help, so we have made it as easy and stress free as possible.
Our online service allows you to complete initial debt advice completely online. You don’t need to speak on the phone unless you want to. You don’t even need to provide a phone number, just your email address so you can save your progress and we can email you a copy of our advice.
At the end of your enquiry, we’ll present you with your options, and let you know which one we recommend for you. You then have the option to apply, or you can save your progress and come back later, once you’ve taken some time to consider your options. When you’re ready to make an application, it’s simply a case of booking a phone call to discuss your chosen solution in more detail.
Rest assured much of the initial work has already been done by this time and the information you’ve provided will be shared with your advisor so you don’t have to do it again.
If you prefer to get help over the phone from the start, you can book a telephone appointment for a date and time to suit to you. We work hard to design our services to suit you and your needs. Talking about debt is never easy, so communicate with us in whichever way makes you most comfortable.
Key advantages of PTD:
Frequently Asked Questions:
A trust deed could be an option for you if you live in Scotland, have £5,000 or more of unsecured debt, and cannot repay it in full within 4 years. You cannot sign a trust deed if you have been made bankrupt and have not yet been discharged.
All trust deeds in Scotland are recorded in the Register of Insolvencies which is free to access online. In order for someone to become aware of your trust deed they would need to actively look your name up on this register. Your trust deed will remain on the Register of Insolvencies for one year after the Trustee has been discharged, then it will no longer be visible.
Cars rarely need to be sold in a trust deed. There are numerous factors that could impact this (including how the car is financed, if it’s owned outright etc.). If you have reasonable need to use a vehicle and it’s worth less than £3,000 it will be unaffected regardless. Your general household possessions will not be affected by signing a trust deed. This includes TVs, mobile phones, laptops, furniture, and white goods.
A trust deed covers all your unsecured debts (such as unsecured loans, credit cards, catalogues, rent arrears, council tax arrears and utilities arrears). There are a small number of exceptions, such as student loans, court fines and debts incurred as a result of fraud or a breach of trust. If you have any debts which cannot be included in a trust deed, Cleanslate will make you aware of this.
Your home may be affected in a trust deed however, this is only usually likely if you have a significant amount of equity. People often overestimate how much equity there is in their home, meaning they wrongfully assume a trust deed won’t be for them.
To make sure that Cleanslate can give you clear advice, if you own a property and are considering signing a Trust Deed, they will instruct a surveyor to provide them with a professional valuation of your property. They will ask you to confirm the redemption figure for your mortgage and any other borrowing secured against the property. This means that they can confirm the exact level of equity in the property.
If there is equity, there are a number of options for addressing it, and Cleanslate will discuss each of these with you. They will come to a clearly defined agreement as to how that equity will be dealt with in the trust deed and will confirm this to you in writing. If your home is likely to be impacted, they will explain this in full to you before you sign anything, putting you in control of your future.
In some circumstances, it may be possible to exclude your property from a trust deed, however this requires the consent of your creditors and Cleanslate will discuss with you whether this may be an option for you in your specific circumstances.
Being in a protected trust deed will not affect your ability to have a bank account; however, you will not be able to use an overdraft. If your current account is with a bank which is also one of your creditors, it is advisable to open a new bank account with a bank to whom you owe no money.
How We Help You
1. You can get confidential debt advice online or over the phone with us.
2. We’ll recommend the best solutions – completely based on your individual circumstances. We include every available solution in the UK.
3. If you choose a Scottish debt solution, Cleanslate™ will take care of everything. They will speak to your creditors and take care of all the paperwork.
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To find out more about managing your money and getting free and impartial debt advice, visit www.moneyhelper.org.uk, an independent service set up to help people manage their money.