Trust Deeds offer a number of advantages over sequestration (bankruptcy):
- Your Trustee deals with your creditors. You no longer have to.
- You make just one payment per month from your disposable (surplus) income
- With a Protected Trust Deed, your creditors cannot take further action against you, arrest your earnings or continue to charge interest.
- Unless your employers are one of your creditors, there is no need for them to know that you have signed a Trust Deed.
- It can be possible for individuals to hold certain public offices, remain as directors and for companies to continue to trade.
- Trust Deeds normally last three years. When it ends, the remaining debt is effectively written off.
- Trust Deeds are usually more flexible and cost less to administer than sequestration.