Our Services
Protected Trust Deeds and Sequestrations
Having financial difficulties and no obvious way of dealing with them can be very stressful. Have you reached the stage where you receive threatening letters and phone calls from your creditors?
It is important that you get professional advice so you know all your options before you decide how to go forward. Frequently, people try to borrow their way out of debt by consolidating debts which can take years to resolve and relies on creditors not pursuing the debt during this time.
At Thomson Cooper, our team of Insolvency experts can help you through the process of formally clearing your debts by using one of two methods.
- Protected Trust Deed - this formal, legally binding agreement exists between an individual who is unable to pay his/her creditors and a licensed Insolvency Practitioner (the Trustee). The Trustee will put together a form of proposals to the Creditors for approval and administer the Trust Deed. Provided certain conditions are met, the Trust Deed may be registered as 'protected', this prevents creditors from taking further steps e.g. sequestration (bankruptcy) to recover debts due to them.
- Sequestration - this process involves a court appointment whereby the Trustee, by Act and Warrant, has a legal right to the assets in place of the debtor. The Trustee will realise the assets at best or will monitor the debtor circumstances with a view to maximizing contribution from the debtor and of current earnings.