Frequently Asked Questions - Trust Deed

How much will I have to pay into my arrangement?

Your monthly payment will be based on your disposable income. This is what you are left with after you take away your reasonable monthly living expenses (excluding your debts) from your monthly income.

Can I enter a Protected Trust Deed arrangement if I already have CCJs against me?

Yes. Entering into an Protected Trust Deed arrangement even offers you a way by which you can avoid further recovery action after a creditor has obtained a CCJ against you. Does it make a difference if I am a homeowner or tenant? No. It makes no difference whether you are a tenant or homeowner or even if you are still living with your parents.

If I am a homeowner, will I have to release equity in my home into the Protected Trust Deed?

Almost certainly you will have to release equity in your home into the Protected Trust Deed, usually as part of the final settlement of the Protected Trust Deed.

Do I have to tell my partner?

You will almost certainly have to tell your partner if you are entering into an Protected Trust Deed.

Do I have to be in full time employment?

No. To enter into a Protected Trust Deed, you only need to have a surplus of income above what you need to live on.

Do creditors have to accept a Protected Trust Deed?

A Protected Trust Deed will fail if creditors representing over 33% of the total debt value object in writing within 5 weeks of receiving notice of the institution of the deed.

Can an individual creditor refuse to accept an Protected Trust Deed?

Yes, but only if more than 33% of the total debt is owed to him. Once the deed has become protected, all creditors are bound by law to accept the terms of the deed.

How long will the Protected Trust Deed last?

This can vary, but it usually lasts for 3 years.

To discuss Trust Deeds please call 0800 652 8086