How does a PTD work?
There are two stages in the life of a Protected Trust Deed – protected and not protected. While your application for a Protected Trust Deed is reviewed it remains ‘unprotected’ (or just a Trust Deed) – this means creditors can still pursue you for outstanding debts. Once the Trust Deed has been protected creditors included in the PTD cannot chase you for payments.
We will review your personal and financial circumstances to identify the best solution and advice for you. If entering a PTD is the best advice for you, we will prepare your case for an Insolvency Practitioner. A PTD must be arranged by a licensed Insolvency Practitioner who will become your Trustee (an individual who takes responsibility for your financial affairs). The Insolvency Practitioner will prepare and present your case to your eligible creditors. If there are no significant objections (more than 33% by debt value or 50% in number) the Trust Deed will become protected.
Once a Trust Deed becomes protected any unsecured creditors included within it cannot take legal action against you to recover debts. You must maintain the monthly contributions agreed in the PTD.Continue to the next section How do I qualify for a PTD?