Protected Trust Deed Statistics

A protected trust deed is a legally binding agreement between a person in debt and their creditors. This video shows which area were highest for protected trust deeds in the last year. This statistics and the protected trust deed checker can be found here http://www.debtsupporttrust.org.uk/how-can-we-help/protected-trust-deed 


or here for the checker

http://www.debtsupporttrust.org.uk/media/37787/protected%20trust%20deeds%202010-2011%20checker.xls

Protected Trust Deed Statistics

New figures were released today by the Accountant In Bankruptcy and have shown a decrease in the number of protected trust deeds granted in the previous quarter of 2010/2011.

The new statistics have shown a drop of 25% in trust deeds granted compared with the previous quarter. The fall in trust deeds being grant seems to be linked to the rise in certificate of sequestrations which was introduced in November 2010. Bankruptcy was also on the rise within the last quarter with 2,687 people being awarded bankruptcy through a range of different routes, these can be broken into;

2,173 Awarded from debt applications

445 Creditor Petitions to the court

68 Petitions by the trustee in a Trust Deed

There was also a rise in legally binding debt management solutions such as, D.A.S (Debt Arrangement Scheme) with 478 approved. This is up 9% on the previous quarter and 15% compared with the previous year.

The LILA debt solution has also decreased by 12% to 1,204 compared with 1,368 in the 3rd quarter of 2010/2011.

From the the chart below we can the the increase in sequestrations (bankruptcy) and the decrease of protected trust deeds. The new trust deeds statistics are the lowest in over 5 years and while sequestration may have increased from the previous quarter they are the second lowest figures in over 5 years.

 

Trust Deed Statistics

From this above chart we can see a decline in traditional sequestration (bankruptcy) since the new route to bankruptcy called LILA (Low Income Low Asset) was introduced. LILA is a route into bankruptcy however it is a simplified form for people who have limited income and little or no assets. This is the reason there was an increase in sequestration when LILA was introduced in the first quarter 1 of 2008/2009. It would appear that this continued decline in personal insolvency is good new for the economy as it will mean that people are beginning to be able to pay back what they owe. The unfortunate news is that there is still a long way to go before we will back back at the levels of 2006/2007. This is a good sign that things are getting better but it will probably take more before we are economically safe again.

Trust Deed - How To Avoid Dishonest Organisations

A Trust Deed is one of the most widely used debt solutions for people in Scotland, yet it is one of the least understood solutions. The Trust Deed debt solution has encouraged many debt companies to spring up and offer these solutions. One of the main benefits of the Trust Deed is that you only repay what you can afford, typically over a three year period, with the rest of the money you owe being cleared.

When a companies identifies someone as being suitable for a trust deed they will collect all the relevant documents from the client. Once all the documentation is collated it is sent to an insolvency practitioner who will pay the company for work carried out.

When a trust deed becomes protected the client will only pay back a proportion of the amount owed and so they are usually unaware of any fees or charges.

Tip: When speaking to an organisation who is going to refer you to an insolvency practitioner you can ask what fee they will get and how this will affect yourself. For the most part fees and charges for the trust deed will not affect you but it is within your rights to know anything that can affect you.

Many people have found themselves the victims of dishonest companies who have manufactured their circumstance so that they would meet trust deed criteria. In some instances the companies would charge the client a setup fee, or even carry out text marketing campaigns advertising that people could "write off 90% of their debt".

Tip: While it is not impossible for someone to pay back just 10% of their debt, it is unlikely in most cases, it also give a false impression to people who are vulnerable about what help is available.

Many of these deceitful trust deed companies have been closed down due to their business practices but new ones are alway opening up. It is also worth doing your homework before speaking to any organisation about your financial circumstances.

Tip: When looking for a debt solution like a trust deed, be careful to not speak with any organisation who have contacted you by text as this will generally be a marketing campaign. One option to stay safe when looking for debt advice is to speak with a debt charity. Also check for a charity registration number and search google to confirm this.

Protected Trust Deed and IVA - 'Clear Debt'

A common problem within the debt industry is the lack of clarity around debt solutions. Some websites state that it's "Easy to write off 100% of your debt" and "become debt free today". The Office of Fair Trading is clamping down on firms stating that this is possible. This article examines the truth behind the solutions where you can repay a percentage of your debt, with the rest being cleared at the end of the solution.

The debt solutions people talk about when it comes to 'writing off debt' includes the IVA and Protected Trust Deed. If you are made bankrupt you will also clear the debt you cannot afford to repay. All of these debt solutions will negatively affect your credit rating because of the default. A default on your credit rating will last for 6 years.

The IVA debt solution

The IVA (individual Voluntary Arrangement) typically lasts for 5 years and you would repay a percentage of your debt. The minimum repayment over the 5 years must be 25% however most people repay a lot more. The proposal is put to your creditors at an official meeting and if they accept the proposal your IVA will be in place. The criteria for an IVA is

- debt of at least £12,500

- minimum disposable income of £200

- at least 3 different creditors

A key criteria for the IVA is that your equity (value of your house minus what is owed to your mortgage lender) within your property does not exceed your debt and 5 years of monthly contributions.

The Protected Trust Deed solution

The Protected Trust Deed is similar to the IVA but is only available to people living in Scotland. There are legal differences between Scottish law and the rest of the UK when it comes to debt.

The Protected Trust Deed would last for typically 3 years and at least 10% of the debt must be repaid over the course of the solution. The Trust Deed is signed and advertised within the Edinburgh Gazette. After 5 weeks, if there are no objections (or less than a majority in number or a third in value) then your Trust Deed will be Protected. The criteria for a Protected Trust Deed is;

- debt of at least £10,000

- Minimum disposable income of £150

- at least 2 different creditors

If you have a house with equity then the money tied up in your house should not outweigh your debt and 3 years of monthly contributions.

There are websites, TV adverts, newspaper columns and leaflets which claim to offer miracle solutions to deal with debt. The truth is that "clearing your debts" is not as simple as it's suggested but there is a route to resolve all debt problems. It's essential when dealing with debt you speak to a not for profit charity with qualified debt advisors who can provide you with honest, transparent debt advice.

There are a number of ways to find debt charities you can trust, including using Google and searching for debt advice charity or even speaking to friends and asking for their help.

Debt Support Trust is a registered debt charity providing debt advice on Protected Trust Deeds and IVAs. The charity offers a wide range of support from benefits advice through to help with bankruptcy advice.

New Trust Deed statistics revealed!

New debt statistics have revealed how many Protected Trust Deeds are being administered per postcode. These new debt stats were collated by Debt Support Trust and formatted into a table in order to show which postcode was the largest for protected trust deeds.

From the new debt statistics it is clear that of the 7,980 protected trust deeds (KY11) Inverkeithing had the largest amount between 2010 and 2011 with 144 while TD4 (Earlston) had the lowest number over the year with just 1 case.

The new information has been released in the form of a table which can be searched in order to find a specific postcode. The information has also be released with information to help everyone understand what the statistics mean.

The five largest postcode areas for protected trust deeds are shown below in the list.

KY11 - 144 Inverkeithing
ML5 - 114 Coatbridge
ML6 - 113 Airdrie
EH54 - 110 Livingston
G81 - 105 Clydebank

The general postcode regions have also been collated which means people can see a general overview of which regional postcode was biggest for a Protected Trust Deed.

Note: It is worth remembering that these stats while useful are not linked to per 100,000 population. This means that we while the G postcode may be the largest for a Protected Trust Deed it is also the largest per population and therefore faced a higher chance of having the largest Protected Trust Deed. This information can help to see what effects can create debt and help to stop it in future. For example, In an area where a large factory has closed down and people have faced redundancies it is useful to know wither or not this area was large for protected trust deeds as it could have had an impact.

This information was collated after the released statistics from the accountant in bankruptcy who administers protected trust deeds. The information was then broken into individual postcodes and listed from largest to smallest.

Please note there is a discrepancy of 7 between the 7970 Protected Trust Deeds and the 7973 postcodes.
The statistics have also been split into a pie chart which shows the regional postcodes for each Protected Trust Deed. 

The introduction of certificate of sequestration last year also contributed to a large decrease in the number of people who entered a Protected Trust Deed. This new debt solution allows people to apply for sequestration without the need to prove they are apparent insolvent and therefore have their creditors seek sequestration.