How does a Trust Deed become protected?
Immediately following the signing of the Trust Deed, your Trustee will place an advert in the Edinburgh Gazette. This is a government publication which is not available in retail outlets. Your creditors have five weeks from the date of the advertisement to object to the Trust Deed. A Trust Deed will automatically become protected unless your Trustee receives written objections from the majority of your creditors or Creditors representing at least one – third of your debts. If insufficient objections have been received your Trustee will submit an application to have the Trust Deed registered in the Register of Insolvencies at which time it will become a Protected Trust Deed.
After the trust deed is signed and the creditors notified by an advertisement in a publication called the Edinburgh Gazette, they have 5 weeks to object to the trust deed. If the majority (or those representing two thirds of the debt) do not object within the 5 weeks, the trust deed is considered protected and is recorded in the register.
