A ‘Protected’ Trust Deed is the status your Trust Deed gains when the majority of your creditors agree to it’s terms and the AIB or ‘Accountant in Bankruptcy’ to protect it.
After your Trust Deed is registered, all creditors have the opportunity to object. However, if either a majority in number of creditors or a creditor with over 33% in debt value object within five weeks, then it can fail to become protected. If they don’t object your Trust Deed will be presented to the AiB for protection.
Getting your Trust Deed protected means that your creditors can no longer pursue you or take any action to recover the debt.
If your biggest creditors don’t agree to your Trust Deed, it’s not ‘Protected’ and therefore not legally binding.
At Trust Deed Scotland® we have a 97% success rate for protection and make the entire process as transparent and stress-free as possible. If we can see a risk that a Trust Deed may not gain protection we will always try to manage your expectations and let you know beforehand.