So presumably the law would need to be changed to make this possible Mark?

To be fair, we've seen cases here on the forum where we've all been scratching our heads as to why they were advised into trust deeds when other options appear to be clearly more appropriate.

The could change the law if they wish to allow for the non protected option, but if you follow the logical steps, more often than not this will have no impact on the Trust Deed anyway.

It sounds a lot more serious than it actually is. As an example. Trust Deed is proposed and there are 10 creditors. The 10 send in their claims and agree. The protected part which would follow would appear to be an administrative part to reflect the protected status which is achieved by agreement, not registration.

Head beginning to hurt now!

Mark

You've made all of our heads hurt!

There may be some creditors who do not reply, who would therefore not be acceding to the trust deed and would not be bound by it. Also if there are any objections then those creditors may make life very difficult if the trust deed is refused protection by the AIB.

I do agree though that protection isn't the "be all and end all" that the AIB seem to think. However, whilst an unprotected trust deed is certainly meant to be binding on those creditors that agree to it, in practical terms I think it would prove a lot trickier to keep creditors in line than if the trust deed is registered as protected.

I never realised a non-replying creditor was not bound by it. Suppose I assumed silence would be taken as acceptance ie lack of objection noted.

Hi RBSB

They are deemed to have accepted if they do not respond.

Mark

Not being an expert please feel free to slap me down and tell me not to be sillyÔǪ. 😉

Can the AIB actually deal with the volume of TD's if they are to review them all before credit status is applied? Surly a better practice would to be allow for more audits to be conducted on a selection of TD's that receive protection status?

That said it looks like some good things are coming into the process to deal with companies which are less focused on client and more on the money they will make.

Interesting times ahead for you all!

Hi colski.

From an informed position I think anyone reviewing cases could quite quickly spot the minority of trust deeds where it's quite unclear that the client and creditors are best served by this option.

Sorry if I confused you there, RBSB. Non-response is not an objection so does basically count as an acceptance when working out whether a trust deed becomes protected. If the trust deed does become protected then that creditor is bound by the trust deed along with all others.

However, the difference comes if a trust deed does not become protected. A creditor who has accepted the trust deed is bound by it nevertheless, but one who didn't respond is not.