What is a Protected Trust Deed?

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What is a Protected Trust Deed?
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A protected trust deed is a formal, Government
laid arrangement, available for the residents of
Scotland to legally bind on all of your unsecured
creditors. If you have assets like a property,
your Trustee will also look to release any
available equity through remortgage, or if you
are unable to remortgage, by selling your home.
Simply put, it enables you to deal with your
debts through a licensed insolvency Practioner
(Trustee) and is a voluntary process.
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How does Trust Deed Work?
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When you grant a trust deed, you mean to transfer
your possessions to an insolvency practitioner.
The trustee further gives your creditors an
undertaking that he will use your assets to pay
off all your debts. The Trustee then makes a
proposal to your creditors and asks if they agree
to your trust deed becoming protected. And if
there are no objections, your trust deed will be
protected.
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Who can apply for a Trust Deed?
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• A Trust deed can be applied for by anyone living
  in Scotland who has a debt more than 5000 pounds.
  When a government agency registers your trust
  deed at the end of the 5 week notice period, it
  becomes a protected status. However, the effects
  include
• Stops earning arrestment
• Stops wage arrestment and bank arrestment for
  debts
• You get a discharge at the end of your trust deed
  once you co-operate and do everything as agreed.

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Source

• https//freedebthelpline.org/protected-trust-deed

• https//en.wikipedia.org/wiki/Protected_trust_deed

• http//www.debtadvicefoundation.org/questions/prot
  ected-trust-deed