1. What is the effect of a Trust Deed?
Once the Trust Deed is in place all your unsecured creditors are bound by it. As long as you continue to make your monthly payments and abide by the rules of the Trust Deed then your creditors can no longer chase you for payments. Letters, phone calls will stop. You will be one step closer to becoming debt free.
2. How long will it last and what happens at the end?
A Trust Deed will normally last for 3 years (36 months) and at the end the Trust will deal with your creditors – completing all debts and leaving any remaining debt written off.
3. Why would a Trust Deed be good for me?
You will reduce your outgoings to one affordable payment on your debt and you will be free from the stress of debt because your creditors will stop contacting you.
There will be no need to go to court and there will not be any public notices. Your employer will not be contacted and you generally have fewer restrictions than if you were declared bankrupt.