Protected Trust Deed is a unique Government based scheme introduced by Scotland for their residents in order to legally bind all your unsecured creditors. As per this unique legal agreement, you have to pay each month some amount after spending your living expenses and some other unavoidable expenses almost for four years. You can contact Creditfix Trust Deed agency in case you need any help regarding the setting of your dues. You can even check more interesting fact regarding protected trust deed details at insider.co.uk. After the agreement period of four years, you will be out from all your dues which are mentioned in the agreement.
· Your trustee will have all the powers to remortgage if you own any assets such as land, house and jewelry. If there is any problem in remortgage, your trustee will try to sell your assets in order to reduce your total liabilities. Suppose if you are one of the joint owners to a house and your partner is not agreeing to sell the house then the trustee will go to court to get an order to sell the house in order to take your share of the money. The trustee will return your assets which are not disposed of after completion of the trust deed.
· If some of your creditors are opposed to the agreement, the trustee will check whether the value of the debt of these creditors is less than one-third of the total value or the number of these creditors are only in minority level then the trust deed will come into effect.
· In this situation, your creditors cannot take any actions against you including pursuing debt or putting you in the bankruptcy situation. Keep in mind that the currently protected trust deed will not stop your existing diligence.
· Keep in mind that you cannot declare yourself as bankrupt after you have entered into an agreement and signed the protected trust deed. Suppose if you have again taken a loan from some other creditors during the currently protected trust deed period and if you are unable to settle the loan, your new creditors can file a case against you as the current trust deed will not bind your new creditors.
· All these formerly executed protected trust deeds will be captured into the register of insolvencies and available for viewing by the general public. This will be helpful to the creditors to check the records before sanctioning any loan to new parties.
· Keep in mind that your creditors or trustee still have the authority to take legal possession of your assets at any given point of time even after the protected trust deed is executed by way of filing a legal petition, if they are able to prove that taking your assets into legal possession will pay back them more money.
· There are some new proposals approved by the Government of Scotland in order to make this scheme more effective. You can reach the debt advice foundation which is a free Government based service center in case you require any help in understanding about this scheme.