All the answers you may need about PTDs can be found here. Although this may help you understand more about a PTD we strongly advise that you seek financial advice before entering in to any agreement – even if it isn’t from us. But we’re always happy to help.
You will need to inform the Trustee as soon as possible about any change of circumstances.
There are fees charged by the Trustee for a PTD. There are two types of fees; Initial Trustee fee and a realisation fee (percentage of the amount that is paid in to the PTD). In addition there are also related costs which are called disbursements. These include legal registration costs.
The fees will be deducted from your monthly payments. The amount you pay is based on affordability after your essential expenditure has been considered in line with the Common Financial Statement.
A PTD will adverse affect your credit file and your ability to obtain future credit. A PTD will stay on your credit report for six years from the date it is agreed.
A PTD usually lasts four years. It may last longer than this in some circumstances such as if you miss your payments. If you’re a homeowner then you may be required to release equity in your home by remortgaging.
Generally, unsecured debts can normally be included in a PTD. The following details debts which are excluded from a PTD. These include student loans, money owed to someone who holds a security on your property (e.g. a mortgage or secured loan), debts incurred through fraudulent activity, hire purchases and fines.
When setting up a PTD your creditors can either agree or object once details to apply for it have been made publicly available. Once agreed any contact is usually managed by a Trustee. If you don’t follow the terms of the PTD then it may either be terminated or the Trustee can apply for your sequestration – or bankruptcy. Should the Trust Deed be terminated you will be liable for your outstanding unsecured debts and your creditors will be free to contact you directly.