Is a PTD right for me?
There may be consequences for entering into a PTD. These include:
- A PTD will impact your credit rating for six years following the signing of the Trust Deed.
- If you fail to maintain contributions or fulfil your obligations in relation to the PTD, the Trustee may apply for your sequestration.
- Your Trustee controls any assets you have, other than household essentials, these assets may be sold to raise funds for creditors. This will be discussed with you following a full review of your financial circumstances.
- Details of your PTD will appear on the Register of Insolvencies (ROI) for five years. The ROI is a publicly accessible register. This means someone could find out about your PTD by searching this register. But this isn’t very likely – the ROI is mainly used by creditors or credit reference agencies.
- Homeowners may be asked to release equity in their home as part of the PTD by re-mortgaging.
- Some debts are excluded from a PTD. Excluded debts include student loans, Magistrate court fines, criminal fines (includes debts obtained under the Proceeds of Crime Act), debts from fraudulent activity, damage or personal injury claims made against you and social fund loans.
- Debts that are not part of the PTD must still be managed by you.
- If your financial circumstances improve your monthly payments could increase.