Trust deeds are planned to facilitate those who cannot repay their debts a way to establish, with the aid of a Trustee, a monthly repayment schedule based on what the debtor can afford to pay. The trust deed will last for a specified period, usually three years. When the specified term of the arrangement comes to an end, any remaining debts are written off.

The advantage of a trust deed is that it can relieve the pressure from the creditors as all correspondence and queries are dealt with by the trustee. Trust deeds are usually more flexible and costs less to administer than sequestration.