The type of debts that can be included in a Protected Trust Deed are generally those that are described as unsecured, with some exceptions.
When you enter into a Protected Trust Deed in Scotland, most of your unsecured debts will be included and this may include:
- Credit Cards
- Personal Loans
- Gas and Electric Arrears
- Council Tax Arrears
- Payday Loans
- Store Cards
- Buy Now Pay Later Agreements
- Any Other Outstanding Personal Bill e.g. Vet Bills
There are other debts that can be included in Trust Deeds, but we recommend contacting us today for free, confidential advice as it’s important to understand not only the debts that you have and whether or not debts those can be included in a Protected Trust Deed, but also other aspects include your affordability, total debt owed and your income vs. expenditure.
On some occasions, an alternative Scottish debt solution may be more beneficial for you.
What types of debt are excluded from a Protected Trust Deed?
Typical debts that aren’t included within a Protected Trust Deed include:
- Secured Loans
- PCP and PHP Agreements
- Hire Purchase Agreements
- Court Fines
- TV Licence Arrears
- Student Loans
- Child Support Arrears
You can also find out more about the differences between secured and unsecured loans, if you’re unsure what this means.
Can joint debts be included in my Protected Trust Deed?
A joint debt in Scotland is a debt that has your name and the name of the other person you entered into it with on the agreement.
A joint debt can be included in a Protected Trust Deed, however, the other person named on the debt will still be responsible for making payments towards it.
This is also true of guarantor loan debts in Scotland.
If you have some of the debt written off, the other person will still be asked to pay the remaining money back, therefore that debt isn’t written off in the same way that the other debts that included in the Protected Trust Deed would be written off.
If you have joint debts, and are thinking about applying for a Protected Trust Deed, you should contact us for free, confidential advice first.
We can let you know how it would affect you and the other person named on the debts.
What happens to my debt during a Protected Trust Deed?
Before Trust Deeds are agreed, proposals are put to the creditors who monies are owed to.
If the creditors agree to the Trust Deed, you’ll make monthly payments towards the Trust Deed for 48 months, or 60 months if this was agreed as an extended duration for the Trust Deed.
When your Protected Trust Deed has been complete, you’ll be discharged. At this point, any balances outstanding on the debts included in your Trust Deed will be written off.
Is a Protected Trust Deed right for me?
To find out if a Protected Trust Deed is right for you, we advise you to try our online Trust Deed Wizard® tool.
This will begin the process of finding a debt solution for you, based on your own unique circumstances.
When you’re looking at the types of debts that can be included in a Protected Trust Deed, you may have debts that can be included such as those owed to family and friends but you may benefit from speaking to Trust Deed Scotland® in order to find out the advantages and disadvantages of doing so.
There are alternative solutions to Trust Deeds in Scotland, one of which is the Debt Arrangement Scheme. When you speak to an expert money advisor, all pros and cons will be explained to you, and sometimes the type of solution that fits your needs best may not be a Protected Trust Deed after all.
When considering your decision on whether a Protected Trust Deed is right for you, we have previously written articles in response to questions we’ve previously been asked such as Is A DAS Worth It? or Is A Trust Deed A Good Idea?
Trust Deed Scotland® has thousands of reviews on Trustpilot, however, we also offer Debt Arrangement Scheme and Sequestration advice, which means you will be given balanced, fair advice that puts you in control of the decision-making process.