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Scottish Trust Deed Forum
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Topic starter
21/05/2009 2:03 pm
What does protected mean when people talk about a protected trust deed? Is a protected trust deed different to a normal trust deed?
21/05/2009 4:59 pm
Hi Emily
Very roughly the proposal starts off as a Trust Deed and that offers no real protevtion from creditors. However provided certain requirements are met (ie agreement by majority etc) the the Trust Deed is registered protected and this stops interest, charges, legal action etc.
Hope this helps
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
21/05/2009 6:37 pm
Thanks Mark.
How long does it normally take for a trust deed to become a protected trust deed?
21/05/2009 9:17 pm
Hi Emily
After the TD is signed, within 7 days, a notice appears in the Edinburgh Gazette (Don't panic, it's not a newspaper!) A circular is sent to creditors with the proposal and the have 5 weeks from the date of the Gazette ad to accept or reject the proposal. It would only fail if more that 50% in number of creditors (ie 6 out of 10 or more than a third in value of total debts objected)Assuming this happens, after the expiry of the 5 weeks, the TD is registered as protected.
Hope this helps.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
