Once you begin using a protected Trust Deed it is important to be aware of how the process will continue. It is a legally binding agreement, and you will be required to abide by the terms set out for you. While this may seem daunting we will always be available to make sure your PTD is successfully concluded and you can leave you debt problems behind you.
Through the effective use of a Trustee to administer the process and guide you along the path to solvency you will always have someone to turn to who you can trust. The ultimate goal is for you to exit the agreement with your debts repaid or written off, all the while protecting your assets and making sure your personal situation is taken fully into account.
Our role in the process
Our main role in your Protected Trust Deed will be to provide the services of a licensed Insolvency Practitioner, who acts as a Trustee. Our team are highly-experienced in this process, and will work hard to fulfil their responsibilities to you at all times. Through their work in building a sound PTD proposal you will be safe from threats of legal action which may be made by creditors. This will mean that your home, car and other vulnerable assets will be protected against repossession.
The Trustee will also negotiate the level of your repayments at the outset of the PTD. It is important that these repayments reflect not only your ability to pay, but also your personal circumstances. You must be confident that you will be able to abide by the schedule of repayments, as it is crucial to the conclusion of the PTD that these are made in full according to the agreement made with your creditors. Thanks to our ability to call on a highly-trained and experienced team of advisers who have a proven track record of successful negotiations on behalf of our clients you can trust us to build a reasonable and affordable plan.
This plan should result in the establishment of a single monthly payment which will replace the payments you are already making to a variety of creditors. This payment will be administered by us through your Trustee, which they will then distribute to your creditors. Any costs incurred for our services will be met through this monthly payment. No extra fees will be recovered directly from you.
What the advantages and disadvantages associated with using a Protected Trust Deed?
Through the process there are a wide range of benefits you will receive, but while we will use the opportunities created by this choice of debt solution to their full in order to bring you out of a life of debt there will also be some risks and disadvantages of which you should be aware.
It is important you are thoroughly briefed about any potential negative aspects of using a particular debt solution, because once commenced you will be legally required to abide by the terms of the agreement. We take our role in this seriously, and will never leave any nasty surprises in store for you once you are in the process of tackling your debt.
One of the main advantages of using a Protected Trust Deed is the role which the Insolvency Practitioner plays in the process. You will no longer experience the stress and pressure of dealing directly with your creditors or of receiving legal threats and final demands. Your adviser will deal with all correspondence associated with your creditors – as well as negotiating directly with them to build an affordable proposal – and once appointed to the position your Trustee will administer payments and manage the Protected Trust Deed on your behalf.
Importantly, the process is personalised. The level of repayments will be set with your own situation in mind – your income, expenditure, total level of debt and personal circumstances. You will not be asked to repay more than you can afford.
A Protected Trust Deed also puts a cap on your debt. The process does not lead to extra charges, and the fees associated with the services of the Trustee are met through the monthly repayments already being made. This allows you to work towards a fixed target, placing the conclusion of your debt problems firmly within your reach.
The conclusion of the Protected Trust Deed is also final. Once you finish the schedule of repayments your debts are written off.
However, you should also be aware that there are disadvantages associated with the use of a Protected Trust Deed. It is very important that you take these into account before proceeding, and should you have any questions our advisers will be able to answer them fully before you move any further forward.
One crucial consideration is that creditors have the power vote down a proposal in order to stop a Trust Deed becoming protected, but with our experience in negotiating with Creditors it is unlikely that you will find yourself in this situation. If a Protected Trust Deed is unlikely to succeed then we will advise you of your other options, and work with you to pursue an alternative debt solution.
There are also long-term effects of using a Protected Trust Deed, such as difficulty in obtaining credit in the future. This is because a note of your use of this debt solution will be included in your financial record, and future creditors may view refuse you credit as a risk or offer you unattractive terms. There may also be restrictions on your ability to use a Protected Trust Deed if you work in certain professions, or you potential to enter certain industries as an employee should you use this solution.
There may also be a risk to your home, through issues such as re-mortgaging, but we will always make you fully aware of these and any other risks, and use our experience in this field to minimise their effect on your ability to solve your debt problems in a way which suits you.
How long can I expect the process to take?
Once you are fully aware of the process and feel ready to begin, you will naturally begin to think about when it can be concluded. The normal duration of a Trust Deed is 48 months, though this is dependent on the initial amount of ‘disposable income’ available. If you need longer or if a greater period of time suits your situation it is possible for the term of the Protected Trust Deed to be extended by a year. At the conclusion of the period of the Protected Trust Deed – and providing you have fulfilled the terms required of you through the agreement – your debts will be viewed as paid. Any outstanding amount or difference between the total amount owed and repaid is written off. There may be some exceptions to this rule, however if it is likely that you will be subject to one of these exceptions our adviser will make sure you are fully aware of the situation. We promise to work with you at all times to bring you back to a position of financial stability as quickly and as simply as possible.