Glossary · UK
What is Protected Trust Deed (Scotland)?
A formal Scottish debt solution where a trustee takes control of a debtor's assets and income, usually over 48 months, in exchange for writing off the remaining debt at the end.
Full Definition
A Protected Trust Deed (PTD) is a formal, legally binding debt solution available in Scotland, broadly equivalent to an Individual Voluntary Arrangement (IVA) in England and Wales. The debtor voluntarily transfers their estate to an insolvency practitioner (the trustee), who realises available assets and collects an agreed affordable contribution from income, usually over a period of around 48 months. A trust deed becomes 'protected' once it has been registered and creditors representing more than a third of the debt by value have not formally objected within a set period, after which all qualifying creditors are bound by it even if they did not respond. At the end of the term, any remaining unsecured debt included in the deed is written off. A PTD is recorded on the Register of Insolvencies and appears on the debtor's credit file, generally affecting access to credit for around 6 years, similar to bankruptcy.