What is a protected trust deed?
A trust deed becomes a protected trust deed once your creditors have agreed to the proposal. At least half of your creditors need to accept the proposal for it to go ahead, or creditors representing at least two thirds of your total debt. If a creditor doesn’t respond, it’s assumed that they’ve accepted the offer.
Once the trust deed is protected, your creditors they can no longer take action to collect the debt including chasing you for payments or starting court action.
Instead of making payments directly to your creditors you’ll make a payment to your trustee managing the protected trust deed and they’ll distribute this to your creditors on your behalf.
Is a trust deed right for you?