180 Advisory Solutions’ Continued High Placing in Protected Trust Deed Performance Table

November 6, 2018

Over the past few years, we have written an annual blog in response to the Account in Bankruptcy’s Annual Report and Accounts. Specifically, we have focussed on the failure rates of companies offering protected trust deeds (PTDs). If you have read our previous blogs, you will know failure rates vary immensely between companies.

Our first article highlighted one company that failed an astonishing 88% of all the PTDs it closed in 2015/16 — almost six times worse than the industry average! Our second article, the first report in which our own performance was recorded, showed some improvement across the board but high failure rates persisted in specific corners of the industry.

Since the AiB just released its report for 2017/18, we are taking another dive into the data to see whether PTD performance has improved.

 

What is a Protected Trust Deed?

A PTD is a debt relief/insolvency instrument. Essentially, it is an agreement between you and your creditors for you to make affordable monthly payments and contribute any of the equity in your assets (such as your home) towards your debt over a set period.

At the end of the agreed period, any remaining debts are written off as long as your PTD hasn’t failed.

 

What does a failed Protected Trust Deed mean?

When a PTD is closed, a successful one means all your debts are written off and a failed one means your debts are not written off — even if you have paid thousands of pounds over several years to your trustee.

Sadly, when a PTD fails, people often end up in a far worse financial position than they were at the start as they are saddled with fresh interest and charges.

 

How did companies perform in 2017/18?

Compared to last year, there is a lot of movement within the PTD performance table. Knightsbridge, which failed 63% of its closed PTD cases last year, and Campbell Wallace Fraser, which failed 74% of its closed PTD cases last year, have improved although they are still at the higher end of the scale.

Creditfix and Carrington Dean, however, have recorded PTD failure rates higher than in previous years and are the companies with the highest and joint-second highest failure rates respectively.

As you can see, the average failure rate has also risen slightly, although it remains lower than 2015/16.

 

How did 180 Advisory Solutions Perform?

We are delighted to announce that 180 Advisory Solutions has recorded the joint lowest PTD failure rate for 2017/18. Of all the PTDs we closed last year, none were failed, an achievement only matched by two other Scottish firms!

We are delighted to see our hard work reflected in the performance table and aim to continue that quality of service moving forward.

The AiB’s report again proves that it is immensely important to choose the insolvency firm that is most likely to get you to the end and have your debts discharged. Choose the wrong firm and your chances of successfully completing your PTD plummet.

Here are some helpful tips when deciding which firm to go with.

  • Ask the person you are speaking to what their PTD failure rate is.
  • Check their failure rate in the AiB report (page 107).
  • If it is high, ask the firm to explain it and decide whether you like their answer.
  • Ask the person you are speaking to who your trustee will be and which firm the trustee works for so you can check the failure rate.
  • Work out whether the firm you are talking to will be the one actually doing your insolvency (or are they selling your details to another firm?) and decide if you are happy with the answer.
  • You need to carefully evaluate all available firms and select the one that’s most likely to get you from the start to the end of the PTD.

If you would like to discuss your options, our debt experts are waiting to help you. Please contact our office for free, confidential advice.

Professional Indemnity Insurance – our professional indemnity insurer is Mapledown Royal & Sun Alliance plc , Mapledown Underwriting LLP, The St Botolph Building 138 Houndsditch London EC3A 7AG and policy number is RTT262119/11273. The territorial coverage is worldwide (excluding professional business carried out from an office in the United States of America or Canada) and excludes any action for a claim brought in any court in the United States of America or Canada.


GLASGOW LIVING WAGE EMPLOYERBarry John Stewart and George Dylan Lafferty are authorised to act as insolvency practioners in the UK by the Institute of Chartered Accountants of Scotland. Company Registration Number SC 477598 | VAT Registration Number 192 5146 03 | Data Protection Registration A1056203 | FCA Registration Number 766693 | Registered office: 2nd Floor Suite 148, Central Chambers, 11 Bothwell Street, Glasgow G2 6LY.