Protection is what gives Trust Deeds their power
A Protected Trust Deed carries legal force: it binds all creditors listed in it, whether they voted for or against, whether they objected or did not respond. This gives you legal protection from enforcement action for the duration of the deed.
Without protection, a Trust Deed is only a voluntary arrangement with the creditors who agreed. Non-participating creditors could continue to pursue you separately.
The five-week creditor window
Once a Trust Deed is signed, the Trustee notifies all listed creditors and gives them five weeks to consider it. Creditors can accept, object, or fail to respond.
Protection is achieved if fewer than a majority of creditors (by number and by value) object within the five weeks. In practice, most Trust Deeds achieve protection because non-response is treated as acceptance.
If a majority does object, the Trust Deed does not become Protected. In that case, the Trustee may propose amendments, or the case may need to move to sequestration.
The Accountant in Bankruptcy role
The Accountant in Bankruptcy (AiB) is the Scottish equivalent of the Insolvency Service. AiB registers Trust Deeds, monitors compliance, and can intervene where problems arise.
AiB does not decide whether a Trust Deed is Protected — that is the creditor voting process. But AiB does oversee the entire framework and can force changes to Trust Deed terms in some circumstances.