Often people ask what the difference between a Trust Deed and a Protected Trust Deed is. There is a slight, but important difference between a Trust Deed and Protected Trust Deed.
For people with severe debt problems and who are insolvent, they may consider a Protected Trust Deed as an option to resolve their debt problem. This solution is only available to people living in Scotland who owe over £10,000 in unsecured debt. There are other criteria which you can find on the Protected Trust Deed page.
A Trust Deed is part of the Protected Trust Deed process. If you are applicable for the debt solution you would need a licenced Insolvency Practitioner to administer your case. The Insolvency Practitoner would create the Trust Deed document which would be signed and issued to each of your creditors. A notice will also be placed in the Edinburgh Gazette.
After 5 weeks, if less than 1/3rd in value or a majority in number don’t object to the Trust Deed proposal it will have gained protection and the Trust Deed will have become a Protected Trust Deed. The protection ensures both you and your creditors are bound by the terms of the Protected Trust Deed.
Read about the available debt solutions on our debt help page.