Trust Deeds – What is a Protected Trust Deed?
What is a Trust deed? Or a protected Trust deed? A Trust deed is a formal agreement between any individual, who is a resident in Scotland, and a licensed insolvency practitioner, who is the Trustee, the trustee will put a form of proposals together and give it to the Creditors to see if it meets with their approval and then will administer the Trust Deed. This allows you to pay off as much of your debts as your assets and/or your monthly surplus income will allow, this is usually for a period of around three-years. If the deed itself meets certain criteria, the deed itself will be registered as protected. If it does become protected, then the creditors are not allowed to contact you at all at any point without express permission. Interest is frozen, as are bank charges. There is no court involvement in this process, it is not as formal as a bankruptcy application, it is worth noting however that it is only unsecured debts that can be included in a protected Trust deed, no debts that ar
