Frequently Asked Questions
Q. What is the difference between a Trust Deed and a Protected Trust Deed?
A. As long as you maintain your monthly contributions, a Protected Trust Deed means that the creditor cannot pursue any further legal action against you and that all interest and charges are written off.
Q. Will my Creditors agree with this?
A. You need one third (in Value) or one half (in Number) of the creditors to vote in writing AGAINST the proposed Trust Deed. The Protected Trust Deed usually gives the creditor more flexibility, and often more money (better dividend) than sequestration (bankruptcy).It is the more favourable option. In most cases at least a 10 pence in the £ dividend minimum is required.
Q. How long does it last?
A. A Trust Deed normally lasts for 3 years with you making 36 monthly payments. The period can be shortened or lengthened depending on your circumstances e.g.: whether your Disposable Income changes.
Q. Will I lose my home?
A. It really depends on how much equity you have in your home. We recommend that you find out your equity figure before signing a Trust Deed, alternatively a good estimate can be obtained from
nethouseprices.com. You may be required to re-mortgage to release any equity to your creditors.
A trust deed may affect your credit rating & may remain on your file for up to 6 years. A fee may be applicable depending on suitability and qualification.
