AiB 7 - Trust Deeds - Page 2


If you have a serious debt problem but do not want to be sequestrated (made bankrupt), you can think about a protected trust deed.

There are 2 types of trust deed:

  • a trust deed (sometimes referred to as an unprotected trust deed); and
  • a protected trust deed.

As most people go for a protected trust deed, this booklet is mainly about this type. But because all trust deeds start as unprotected trust deeds, it does also talk about them.

A trust deed voluntarily transfers your assets (things you own) to a trustee. They manage and sell these to pay your creditors (the people you owe money to).

For a trust deed to become protected, it must meet certain conditions laid down in law. The advantage of the protected trust deed is that it stops creditors going to court to make you bankrupt.

A protected trust deed is not as formal as sequestration and also avoids some of the restrictions of being bankrupt. But it is binding in law on both you and your trustee and is a very serious step to take.

So think very carefully before signing a trust deed and ask for advice from a solicitor or one of the agencies listed on pages 10 to 12.

This booklet answers questions we are often asked about trust deeds.