What is the difference between a trust deed and sequestration (bankruptcy)?
A trust deed is a private contract between you, your trustee and your creditors. It has to be advertised and how it works is regulated, but it is less formal and does not involve the Court. In a sequestration (bankruptcy), your trustee is an officer of the Court. You commit a crime if you borrow money without disclosing your status, you cannot be a company director, and you are disqualified from elected public office.
