Protected Trust Deed (PTD)

If you have a debt problem, one of your options for sorting it out might be a Protected Trust Deed (PTD). A Protected Trust Deed is an option for those with more than £6000 of unsecured debt who are finding it difficult to meet their contractual debt repayments. A Protected Trust Deed is a solution only available in Scotland.

Remember, a Protected Trust Deed might not be your only option and it might not be the most appropriate debt solution for your needs. Our trained advisors can assess your financial situation and help you find the most suitable option for you.

Listed below are some of the Main Advantages & Disadvantages of a Protected Trust Deed

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  • A Protected Trust Deed offers you legal protection from your creditors

  • A PTD usually has a fixed term of 4 years and at the end of the PTD any outstanding balances on included debts will be written off

  • The payment you make into a PTD is based on your income and expenditure, so should always be affordable to you

  • The fees are usually incorporated into your monthly payments and vary between PTD companies

  • Interest and charges in included debts will be frozen and creditors cannot legally chase for additional payments


  • Your credit file will be affected for 6 years and you will be restricted from obtaining credit during the IVA. Your ability to obtain credit may also be affected

  • Any debts not included in your PTD will remain outstanding

  • A PTD can impact on certain jobs, such as those in finance and the Civil Service, if you are unsure check your employment contract

  • Failure to keep up to date with PTD payments may result in your creditors filing for your bankruptcy, which they can do without your consent

  • Homeowners may be asked to re-mortgage 36 months into the PTD; if this is not possible you may be required to extend your PTD by a further 12 months. A remortgage may attract higher interest rates

  • Restrictions will be placed on your expenditure once entering into a PTD

  • Some creditors may not approve a PTD Proposal

  • Because this is a formal solution your details will be placed on a publicly viewable register