What is a trust deed

A trust deed is a legally binding agreement between you and the people you owe money to, to pay all or some of the money you owe. It can help you if you're having problems paying your unsecured debt including things like credit card debt and personal loans.

Protected trust deed

A trust deed can become protected if the majority of creditors are happy with the terms of the trust deed.

If a trust deed is not protected then your creditors can still take action to get back the money you owe them. They can also ask the court to make you bankrupt.

When a trust deed is protected, your creditors cannot:

• contact you directly
• chase you for payments
• add more interest or charges
• take any court action for unpaid debts

Your trust deed must be protected for your debts to be written off at the end.

How long a trust deed lasts

You'll usually make payments for 4 years. If you have stuck to the terms you agree with your trustee, you will be discharged from the trust deed. Your trustee can refuse to discharge you if you have not stuck to the terms, for example you have not made all the payments.