What happens after my Protected Trust Deed finishes

Quite naturally, most people will want to understand the Trust Deed process before the commit themselves and establishing the answer to this question becomes more significant when not enough money has been paid into the Trust Deed to fully repay the original debt.

So, what happens after my protected Trust Deed finishes?

Is it true that you will automatically become debt free, and that your outstanding debts are written-off?

Well the good news is YES You will be debt free.

When the Protected Trust Deed payments have completed, and the Trustee has been discharged as Trustee by the Accountant in Bankruptcy, then all the outstanding balances from the original debts must be legally written off by the creditors.

In many cases, this debt write off can be tens of thousands of pounds, though it is fair to point out that there isn’t a standard level of write off and, in the other extreme, some people may actually repay all their original debt in full.

This is because each Trust Deed is unique, and as such, the amount of debt being repaid throughout the Trust Deed will vary considerably from case to case.

So what do you do next?

After the successful completion of the Protected Trust Deed the Insolvency Practice will write to the you and inform you that your Trust Deed has completed successfully, and that you have been discharged.

It is advisable for you to them write to each of the credit reference agencies to notify them that the Trust Deed has been successfully completed. This should be confirmed by a photocopy of the latter from the Trustee.

This action makes sure that your credit files are brought up to date.

The main credit reference agencies are : Experian, Equifax. and Callcredit.

Even though you are now debt free, and no longer in their Protected Trust Deed, you will still struggle to get further credit for the next two and a half years whilst the Protected Trust Deed is noted on your credit history, even though it has been completed successfully.

Once the Trust Deed is removed (6 years after the Trust Deed began) then you can start the process of trying to repair your credit score.

You should take a look at your credit file after 6 years from the beginning of your Trust Deed to ensure that it has been removed from your file.

This is typically done by borrowing small amounts on credit, and taking care to repay the payments as they fall due, showing the creditors that you can manage your finances without any issues.

For further information on this subject read How will a Protected Trust Deed affect my Credit Rating, one of our free guides.