How does a trust deed become a protected trust deed?
Protection needs to be applied for by the Trustee, once he is sure all the necessary conditions have been met by the application. There is a procedure that must be adhered to, which gives creditors a fair warning of the proposed Trust Deed, and creditors are invited to agree to its terms. After all, a Protected Trust Deed is a voluntary arrangement, and not just for the applicant but also for his creditors, so for a Trust Deed to become ‘Protected’ it is necessary to get their agreement. Whether the Trust Deed becomes Protected or not will be decided by whether sufficient creditors object to the Trust Deed’s terms.
