Protected Trust Deed (PTD) Fee Information
A clear breakdown of Trustee fees and expenses in a Protected Trust Deed — and a worked example of an average PTD.
Protected Trust Deeds (PTD)
All fees charged and expenses payable by your Trustee during a PTD are taken from the income contributions made by you and/or from the sums realised for your assets, if applicable. The fees and expenses of your PTD will be explained in detail in your Trust Deed paperwork. You do not have to pay additional fees other than those you agree to, and if you do not proceed with a solution after seeking advice then there is no charge for our services.
The Trustee's fees
The Trustee's fixed fee for a 4-year Trust Deed ranges from £1,000 to £2,500 — this will vary depending on the work involved in your PTD and your creditors' acceptance criteria. The Trustee's realisation fee is charged based on a % of the funds received into your PTD; this typically ranges from 10–20% of the value of the funds.
Your right to an independent audit
Your creditors will be advised of the Trustee's fees and expenses in your Protected Trust Deed proposal. Should you feel it necessary, you and/or your creditors can request the Accountant in Bankruptcy (AiB), the Scottish Government Agency that supervises Protected Trust Deeds, to carry out an audit of the Trustee's fee. The AiB charge a 5% fee for this audit; this reduces the funds that will be distributed between your creditors.
What the fees cover
The fixed and realisation fees are based upon the amount of work undertaken to set up your PTD and administer it during the 4-year term (which can be longer, if required). Your Trustee, along with suitably qualified members of his staff, will undertake these tasks (this list is not exhaustive):
- Advice process.
- Preparing your Protected Trust Deed proposal.
- Obtaining protected status for your Trust Deed.
- Dealing with your creditors, the AiB and any relevant third parties on your behalf.
- Monitor payment of your income contributions.
- Realising any assets for the benefit of your creditors.
- Adjudicating on creditors' claims.
- Paying dividend/s to your creditors.
- Dealing with any changes in your personal or financial circumstances during the PTD that could affect your payments and if necessary, liaising with your creditors regarding these changes.
- Carrying out an annual review of your income and expenditure.
- Reporting annually to your creditors, updating them on the progress of your PTD.
- Finalising the administration of your PTD, processing yours and the Trustee's discharge.
An average PTD
Based on our average PTD, the following is an example of the fees and expenses payable, the dividend payment to creditors and the possible debt write-off achievable in an average PTD:
| Monthly payment | £206 |
| Debt level | £21,460 |
| Payment term | 48 months |
| Calculation:Total expected payments | £206 × 48 = £9,888.00 |
| Less:Trustee's Fixed Fee | £2,500.00 |
| Trustee's Realisation Fee | £1,977.60 |
| Total Trustee's Fee | £4,477.60 |
| Expenses:Accountant in Bankruptcy | £480.00 |
| Insurance | £40.00 |
| Registers of Scotland | £50.00 |
| Software licence fee | £180.00 |
| Total expenses | £750.00 |
| Outcome:Funds available for creditors | £4,660.40 |
| % return for creditors | 22% |
| Debt write-off | 78% |
Important note
If at any point during a PTD, you feel like you may struggle to pay your income contribution, you must contact us immediately. It may be possible to arrange a change in payment amount or a payment break due to extenuating circumstances, assuming these could be evidenced. If you breach your payment agreement without making contact with us, you could be refused your discharge from the PTD which would leave you in the same position as you were before signing the Trust Deed — i.e. having to repay all remaining debts in full (plus interest and minus any repayments made via the Trust Deed to date) and dealing with all creditors. In some cases, you may be sequestrated (made bankrupt) for failing to comply with the terms of the Trust Deed. It is also possible for the Trustee to go directly to your employer and have the income contribution deducted from your salary; this will only happen if two consecutive payments have been missed and you are not co-operating with the Trustee.
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