How does a Trust Deed become a Protected Trust Deed

After the Trustee has satisfied himself that the Trust Deed is the strongest financial offer the applicant can realistically maintain, he will look to apply to have the Trust Deed ‘Protected’.

There is a strict procedure to follow that ensures creditors have a reasonable amount of time within which to lodge an objection to the proposed Trust Deed.

The first stage of the process is for the Trustee to post an notice in the Edinburgh Gazette.

The Edinburgh Gazette is a financial services publication which publishes details on sequestrations and protected trust deeds, and is circulated throughout the professional sector. The notice acts as an announcement to all creditors of your request to have your Trust Deed Protected.

Once the notice has been placed, the Trustee will write to each of the creditors, and notify them of your request for a Protected Trust Deed, and he will enclose a copy of the Edinburgh Gazette notice.

These two actions are all that is required to set the process rolling.

Creditors have 5 weeks from the time the notice appears in the Edinburgh Gazette within which they can raise an objection to your Trust Deed.

So long as no more than half (in number) of the creditors do not reject the Trust Deed, or no more than 33%, (in value terms) object to the Trust Deed then it will become Protected.

Also, if a creditor fails to make his opinion known within the 5 week period, the Trustee will consider his a vote of acceptance.

Click here to read what options you have if your Trust Deed fails to become Protected.

Once accepted the Trust Deed is Protected and all creditors are legally bounds by its terms.

If you would like to discuss your circumstances with a Protected Trust Deed adviser and explore the Protected Trust Deed option, then why not call 0800 088 7503 now and arrange a FREE and confidential Trust Deed consultation.