Protected debts are safe
Debts listed in a Protected Trust Deed are legally frozen. Creditors cannot pursue them separately, take you to court for them, or petition for your sequestration on the basis of them.
This is the core benefit of protection: for the debts covered, you have full legal insulation for the four years of the deed.
Debts outside the Trust Deed
Any debt not included in the Trust Deed exists separately. If you had a debt at the time of the deed but did not disclose it, that debt is not protected — the creditor can pursue it and petition for sequestration on it.
Debts that arise after the Trust Deed starts (new borrowing during the deed, ongoing bills not part of the deed) are also outside protection.
This is why the initial disclosure at the Trust Deed application stage matters — full disclosure ensures all pre-existing debts are protected.
If sequestration happens during a Trust Deed
If sequestration is imposed while a Trust Deed is running (usually by a creditor for a non-included debt, or by AiB for non-compliance), the Trust Deed is terminated.
Any funds already gathered by the Trustee usually go to the sequestration estate. Debts covered by the Trust Deed become claims in the sequestration.
This is uncommon in practice for cooperative Trust Deeds — but the risk exists where excluded debts get large and the creditor loses patience.