Protected trust deed

A protected trust deed is a special kind of trust deed and unlike an ordinary trust deed it is binding on all the creditors. This means that, provided the debtor complies with the terms of the protected trust deed, the creditors cannot take further action to recover the money owed or apply for bankruptcy. Secured creditors may, however, still take action to take possession of the debtor's home if the debtor falls behind with the mortgage payments.

A protected trust deed prevents the debtor applying for their own bankruptcy or for a debt payment programme under the Debt Arrangement Scheme (DAS).

If a debtor runs up any new debts after they sign the trust deed, they will not be protected from legal action by these new creditors. 

To view or download the AIB's Guide on Trust Deeds click here