New protected trust deed regulations came into force on 28 November 2013. The provisions included:
Individuals’ surplus income will have to be assessed using one tool – the common financial statement as this will provide more transparency in assessing whether a PTD is the best solution. A minimum of 48 monthly payments will be required.
The minimum debt level for entry to a PTD will be £5000
Trustees will be able to charge a fixed fee augmented by a % of the funds ingathered
The new regulations will also provide greater transparency and control for creditors. Trustees will have to provide creditors with an annual update and provide an indication of the likely dividend during each of the four years of the deed.
For further information, please contact William Dolier, Partner.