Livingston

West Lothian Council (Tel: 01506 213000) or Edinburgh City Council (Tel: 0131 200 2360) can provide local advice, or you can contact us on 0800 881 8709 for free confidential advice.

If you are struggling to repay your debts there is one government-approved solution that might suit you – the Protected Trust Deed (“PTD”). This is an agreement between you and your creditors that reduces your payments to what you can afford. A Protected Trust Deed usually lasts for three years (occasionally 4 years) , and after you have made the 36 monthly payments that balance of your debt is written off.

What does “Protected” mean? An insolvency practitioner will write to your creditors giving them all details of what is proposed. This is their chance to object. The deed is listed in a government newspaper called the Edinburgh Gazette, and the creditors have five weeks to write to your trustee objecting. If half in number or two-thirds in value object at that stage then your trust deed “fails” (fails to become protected) and the creditors can ignore it. You have to discuss with your trustee how likely that is, and what you would do if that happens.

 If the deed becomes protected then your creditors can no longer demand payments from you - the phone calls and letters will stop – and provided you keep paying what you can afford for the period of the deed then the balance of your debts has to be written off by the creditors.

 There are disadvantages of a trust deed. It is a legally binding arrangement. It will be on your credit record for six years, and you should not take out extra borrowing until you are discharged. And if you default then you won’t get discharged of your debts, there is a good chance the payments you have made will be wasted in trustees fees, and the trustee can ask for you to be sequestrated (made bankrupt).

If in doubt, take independent advice. Citizens Advice Bureau West Lothian and CAB West Lothian - Blackburn Outreach will be able to help you.

 What about your house? If there is equity in it, this will need to be realised to go to your creditors. As a last resort, that can mean your house has to be sold but your trustee will want to avoid that by allowing you to remortgage, try the mortgage to rent scheme, or if the amount is small to continue your contributions after the three years to pay this off.

 For many people a trust deed is a practical and affordable way to deal with unmanageable debts. So if you have lived in Scotland for 6 months and you can afford to pay a monthly contribution from your wages, then phone us on 0800 881 8709 for free confidential advice on whether a Protected Trust Deed is right for you.