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Trust Deeds Vs Sequestration
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Protected Trust Deeds Vs Sequestration
Protected Trust Deeds – PTDs Pros and Cons
Protected Trust Deeds – PTDs Pros and Cons
A Protected Trust Deed is available to all individuals, Sole Traders and Partners (domicile in Scotland) who are insolvent and are experiencing creditor pressure. It can be used by those who own their own property and wish to avoid the possibility of losing it in the event they were made bankrupt. You do not have to own a house to sign a Protected Trust Deed.
For a Protected Trust Deed to succeed you need to be control of your spending. Whilst in a Protected Trust Deed you will be unable to get credit therefore you must live within your means.
For a Protected Trust Deed to succeed you need to be control of your spending. Whilst in a Protected Trust Deed you will be unable to get credit therefore you must live within your means.
Protected Trust Deeds – Pros
Debt free in 36 months.
Interest and charges are frozen.
Monthly payment is based on what you can afford.
No direct fees to be paid by you but be warned some companies may charge you an upfront fee.
No more creditor contact throughout the term of the arrangement.
Avoid all of the unfavorable stigma and restrictions of bankruptcy.
Legal action and collection action will stop.
Compels you to address your financial management issues.
Removal of the temptation to get further into debt.
Protected Trust Deeds - Cons
In order for the Protected Trust Deed to be agreed, you require a third in value of the unsecured creditors to approve the arrangement.
Your home and assets may still be at risk if the creditors decide not to exclude them.
You may find getting credit in the future more expensive. Creditors will assess your risk level based on your financial history.
You will not be able to use your store or credit cards. These will be cut up.
You will normally not be allowed to borrow any more money until you have successfully completed your arrangement. It may however be possible to change an existing mortgage or take a new one while you are in a Protected Trust Deed.
If the Protected Trust Deed fails as a consequence of you not meeting your obligations under it, it likely that you will be sequestrated (bankrupt).
Sequestration Pros and Cons
Sequestration / Scottish Bankruptcy
Bankruptcy in Scotland is called Sequestration. Sequestration is a legal way of dealing with debts that you cannot afford to pay. It will clear all of your unsecured debts and make sure that your assets are shared out fairly amongst your creditors.
Anyone can be sequestrated if you owe over £1500 and are struggling to make repayments when they fall due
Sequestration – Pros (Scottish Bankruptcy)
Creditors are legally no longer allowed to harass you for payment and no further action can be taken
The debt will be wiped off completely
Pensions and benefits will not be affected
Could be Discharged from sequestration within 12 months
Sequestration – Cons (Scottish Bankruptcy)
Any valuable asset that you own will have to be sold (includesendowment policy and your home)
Certain jobs can be affected by sequestration
Your sequestration will be advertised in the Edinburgh Gazette
Sequestration will be on your credit files for 6 years
For more information on Protected Trust Deeds – PTDs or information about our other debt solutions, speak to one of our experienced debt advisors on our debt free helpline: 0161 713 1883
Debt free in 36 months.
Interest and charges are frozen.
Monthly payment is based on what you can afford.
No direct fees to be paid by you but be warned some companies may charge you an upfront fee.
No more creditor contact throughout the term of the arrangement.
Avoid all of the unfavorable stigma and restrictions of bankruptcy.
Legal action and collection action will stop.
Compels you to address your financial management issues.
Removal of the temptation to get further into debt.
Protected Trust Deeds - Cons
In order for the Protected Trust Deed to be agreed, you require a third in value of the unsecured creditors to approve the arrangement.
Your home and assets may still be at risk if the creditors decide not to exclude them.
You may find getting credit in the future more expensive. Creditors will assess your risk level based on your financial history.
You will not be able to use your store or credit cards. These will be cut up.
You will normally not be allowed to borrow any more money until you have successfully completed your arrangement. It may however be possible to change an existing mortgage or take a new one while you are in a Protected Trust Deed.
If the Protected Trust Deed fails as a consequence of you not meeting your obligations under it, it likely that you will be sequestrated (bankrupt).
Sequestration Pros and Cons
Sequestration / Scottish Bankruptcy
Bankruptcy in Scotland is called Sequestration. Sequestration is a legal way of dealing with debts that you cannot afford to pay. It will clear all of your unsecured debts and make sure that your assets are shared out fairly amongst your creditors.
Anyone can be sequestrated if you owe over £1500 and are struggling to make repayments when they fall due
Sequestration – Pros (Scottish Bankruptcy)
Creditors are legally no longer allowed to harass you for payment and no further action can be taken
The debt will be wiped off completely
Pensions and benefits will not be affected
Could be Discharged from sequestration within 12 months
Sequestration – Cons (Scottish Bankruptcy)
Any valuable asset that you own will have to be sold (includesendowment policy and your home)
Certain jobs can be affected by sequestration
Your sequestration will be advertised in the Edinburgh Gazette
Sequestration will be on your credit files for 6 years
For more information on Protected Trust Deeds – PTDs or information about our other debt solutions, speak to one of our experienced debt advisors on our debt free helpline: 0161 713 1883
