Q: Will I have to sell my home if I enter a Protected Trust Deed?

A: If you are a homeowner you could be required to release equity from your home to repay creditors. In certain circumstances, you could be required to sell your home, however this will be outlined prior to a PTD beginning.

Q: Will I have to pay a set up fee?

A : A set up fees will apply and will be notified in advance. Fees for the Insolvency Practitioner handling your PTD will be taken from the amount you pay into your PTD each month.

Q: Will I have to sell assets like my car or furniture?

A: You will be allowed to keep essential household items such as your TV, appliances and furniture. However you could be asked to sell assets of value. In most cases you will be allowed to keep a vehicle – especially if it is needed for family or work purposes. You could be asked to downgrade your car if it is of high value.

Q: Can I cancel a Protected Trust Deed?

A: A Protected Trust Deed is a legally binding agreement; therefore once it is place, you cannot cancel the PTD.

Q: How long will a Protected Trust Deed last?

A: A Protected Trust Deed typically lasts for 3 years.

Q: How long does it take to set up a Protected Trust Deed?

A: The set up period is dependent on the individual’s personal circumstances and creditor agreement. It is essential that all paperwork is completed thoroughly and on time as this will aid the PTD application process.

Q: Will a Protected Trust Deed affect my credit rating?

A: Your credit rating will be affected in the medium to long term, but if you have missed payments or made late payments in the past, then your credit rating could already be affected.

Q: Do creditors have to agree to a Protected Trust Deed?

A: A Protected Trust Deed is subject to creditor agreement, which is not always guaranteed. A PTD can only fail if creditors holding 33% (or more) of the total debt value object in writing within 5 weeks of receiving notification of the Protected Trust Deed.

Q: What happens if I stop paying into a Protected Trust Deed?

A: If you do not to keep to the terms of the PTD, then your Protected Trust Deed will fail and the Insolvency Practitioner has the right to petition for your Sequestration (Bankruptcy). Creditors can request your Sequestration; this is a serious debt solution due to the severe repercussions it can have on your home, life, business and assets.

Q: Can I still have a bank account if I enter a Protected Trust Deed?

A: Yes you can still have a bank account; however you should avoid using an account that adds unnecessary charges such as overdraft fees so that you have greater control over your money.

We recommend the Evolution Current Account.

The Evolution Current Account offers:

• Guaranteed acceptance (subject to basic ID checks)
• No credit checks
• No more overdraft charges
• A simple application process
• Safe and secure internet banking
• Help managing your money
• Cash rewards