Protected Trust Deeds (PTD) - Pros and Cons

Trust Deed - Pros

• Debt free in a set time (normally 36 months)
• Interest and charges are frozen, for the term of the trust deed
• Monthly payments are based on what you can afford (Disposable Income)
• No upfront fees
• No more creditor contact i.e. letters, phone calls, etc
• Avoid all of the stigma of bankruptcy
• Legal action and collection action will stop, by law
• Removal of the temptation to get further into debt

Trust Deed - Cons

• In order for the Protected Trust Deed (PTD) to be agreed, you require a third in value of the unsecured creditors to vote for your Protected Trust Deed (PTD)
• Your home and assets may still be at risk
• You will not be able to use your existing credit cards, store cards or catalogues
• You will normally not be allowed to borrow any more unsecured money until you have successfully completed the protected trust deed (PTD)
•  If you do not maintain your monthly payments to the Protected Trust Deed (PTD) then your creditors have no other option but to look at sequestrated
• (bankrupt)

What are the Pros and Cons of Sequestration?

Sequestration - Pros and Cons

Sequestration - Pros

• Sequestration will remove any pressure and stress you are suffering
• All your debts will be written off, in full and you will be Debt Free

Sequestration - Cons

• You may lose control of your assets such as your house, Property, car, any household effect (if they are of excessive value) and these may be sold
• Your sequestration will be printed in your local news paper and in the Edinburgh Gazette.
• While you are sequestrated you can not apply for any credit over £250 without discussing this with you Insolvency Practitioner (IP)
• Your are prohibited from acting as a Company Director and Certain Professions  
• If sequestration is granted you cannot become:  a Member of Parliament, Justice of the Peace (JP), and Governor of a School or become a member of the Local Authority.