How does my trust deed become a protected trust deed?
Your trust deed will become protected if a sufficient proportion of creditors agree to it. You need agreement from at least half of your creditors and the creditors who agree must be owed at least one third of your total debt. Creditors who do not reply to your trustee within 5 weeks of the date of the advert in the 'Edinburgh Gazette' are treated as if they had agreed.
Your trust deed will become a protected trust deed from thedate that it is recorded in the Register of Insolvencies.
If your creditors object and your trust deed does not become protected, they can take you to court to get back the money that you owe to them. They can ask the court to make you bankrupt.
They can only ask the court to make you bankrupt if they can prove that bankruptcy would be a fairer deal for them. However, this is unlikely because the trustee of a trust deed deals with contributions and assets in just the same way as they would in bankruptcy.
If your trust deed fails to become protected because your creditors have objected to it, you can also apply for your own bankruptcy. You should seek advice from Citizens Advice Scotland or local authority money advisers before making yourself bankrupt.