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Protected Trust Deed

A protected trust deed is Scottish debt solution which lets people struggling with their debt repay a percentage of it over 4 years and the rest is written off.

This is a debt solution which has helped people avoid entering bankruptcy but deals with their debt within a reasonable period of time.

Although a protected trust deed is often sold to people in financial distress as a route to write off debt with little consequences, however this isn’t true.

Protected Trust Deed: What Is It

While someone could write off up to 90% of their debt, they could also finish up repaying the full debt owed as well as any fees incurred.

The reason a protected trust deed exists is to allow people repay a affordable amount to their debt but not to be paying it for an unreasonable period of time.

A monthly contribution is paid by the person in a protected trust deed for 4 years and any interest or charges created due to the debt must be frozen.

At the end of the 4 years any debt which is still outstanding is written off, however if the debtor comes into extra monies or assets during the trust deed it must into the solution.

Protected Trust Deed: How To Start

A protected trust deed requires a qualified trustee to manage the solution but the first step should be to seek free, qualified debt advice.

Once a debt advice organisation has taken all appropriate information and found a protected trust deed to be the best solution, they will contact an insolvency practitioner.

In some organisation they will manage the protected trust deed process themselves and therefore don’t need to contact an external source.

The insolvency practitioner will require proof of income, expenditure, assets and anything else relevant to putting forward the proposal to creditors.

Protected Trust Deed: Benefits

  • Clear Debt Quicker
  • Avoid Bankruptcy
  • Guarantees To Freeze Interest & Charges
  • Payments Are Affordable
  • Stops Creditor Contact
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