UK, 12th February, 2010 - The differences between a voluntary Trust Deed and a Protected Trust Deed (PTD).
Voluntary Trust Deed
A trust deed is a voluntary agreement between you and your creditors (the people you owe money to) to repay part of what you owe. A trust deed transfers your rights to the things that you own to a trustee who will sell them if applicable to pay creditors part of what is owed to them. A trust deed will normally include a contribution from income for a specified period, this is usually 36 months but can vary.
The trustee must be a qualified insolvency practitioner. Insolvency practitioners are regulated by law and must be members of an approved governing body.
An ordinary trust deed is not binding on creditors unless they agree to its terms.
Protected Trust Deed
A protected trust deed is a special kind of trust deed that is binding on all creditors. Provided you comply with the terms of your protected trust deed, the creditors can take no further action to pursue your debts or to make you bankrupt.
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