Protected Trust Deed (PTD)

While businesses cannot enter into a PTD, it can be used for individuals who have personal debt as a result of their business.

It is a legally binding agreement between you and the companies you owe money to. This agreement protects your assets, such as your house and your car, from any legal action made by your creditors. You pay off as much as you can reasonably afford to do so within a set timeframe (normally 4 years). Any debt that remains at the end of this period is written off.

Benefits

  • You are protected from creditors
  • You only pay what is affordable
  • You will be debt free at the end of the process even if your debt is not paid in full
  • No one can raise any other action against you
  • You may be able to protect property if you are a homeowner

Considerations

  • The PTD is noted on your credit file
  • You may have difficulty in obtaining additional credit during and after the PTD is completed
  • This could impact on any mortgage application you may make in the future