This solution is only available to those people living in Scotland. It is similar to the IVA that is available in England and Wales but they are not the same. It is sometimes referred to as a PTD (Protected Trust Deed).
A Protected Trust Deed (Scotland) is a legally binding solution. A proposal is put to a debtor's creditors on their behalf by a licensed insolvency practitioner (IP). The proposal is an agreement by the debtor to make an affordable monthly payment towards their debt for typically 4 years. In return the debtor will only repay what they can afford. Any remaining debt will be cleared at the end of the solution, as long as the debtor complies with the terms and conditions of the debt solution.
There are fees involved in an PTD, but these are taken from the normal monthly payments into the PTD. The supervisor of the PTD will be a licenced insolvency practitioner who will negotiate this with the creditors involved before the PTD is agreed.There are 2 types of fees charged by the insolvency practitioner during a Trust Deed.
The amount of these fees will vary depending on the debtor's circumstances, but will be agreed by both the debtor and the creditors before the Trust Deed is approved.
The Fixed Administration Fee: This fee covers all the work which is done leading up to the proposal being considered by the creditors. This includes the drafting of a proposal which includes the production of a comprehensive statement of affairs, the gathering of all key documentation required and extensive analysis of the documentation to ensure that a Trust Deed is both acceptable to creditors and sustainable for the debtor. This is followed by a meeting with the creditors and consideration of any changes requested by creditors. The Trust Deed will only be approved if both the debtor and the creditors agree on any changes. The fixed administration fee varies depending on how much is paid into the Trust Deed but will be confirmed by the IP.
Trustees Realisation Fee: This fee is paid to the IP and covers all the work which is done after the proposal is approved in supervising the Trust Deed and paying the creditors until the Trust Deed is concluded. These fees are normally capped by creditors at between 15 and 20% of realisations and are drawn monthly from the monthly contributions. The IP will explain this to the debtor in further detail.
Where a customer wants to apply for an PTD, Vincent Bond can gather basic information from them and pass this with the customers consent to a licenced insolvency practitioner. If the PTD is later accepted Vincent Bond will receive a referral fee from the insolvency practitioner.
Important considerations for debtors considering a debt solution:
This website provides information only. Vincent Bond & Co does not provide debt advice. If you wish to apply for any of the debt solutions outlined in this website Vincent Bond will with your permission pass your details to a licenced debt solution provider. You will then be called by an advisor who will discuss your options in more detail. During this telephone call and subsequent communication, you will be dealing with a debt solutions partner and not Vincent Bond & Co Ltd. Fees may be charged by the debt solution provider if you enter a debt solution with them. Vincent Bond will not charge you a fee, but may receive a referral fee from the debt solution provider if you agree to use their services.
We take reasonable care to ensure that the information on this website accurate. However, the user of this website should not rely on the information or take its accuracy for granted. Vincent Bond & Co does not accept liability or responsibility for and gives no warranty as to the accuracy of the information on this website. The provision of the information on this website does not constitute debt advice or recommendation and Vincent Bond will not accept any liability for any action taken by a user relying on the information provided in the website. Use of the information in this website is at the users own risk. Your statutory rights are not effected by this disclaimer.
The Insolvency Service has issued a guide to dealing with creditors for those struggling with debt: In debt - dealing with your creditors.
To find out more about managing your money and getting free debt advice, visit Money Advice Service, an independent service set up to help people manage their money.