Unprotected trust deeds
In a trust deed which has not become protected, there is no statutory procedure to close the trust deed. It is normal practice for a receipt for the final dividend to incorporate a discharge of the trustee and a discharge of the client. Creditors who have not acceded to the trust deed have no requirement to grant a discharge to the client.
Basically, an unprotected trust deed brings no guarantee of an end to the debt for the client and creditors may still pursue them for the money owed.
A better alternative is for the trustee to sequestrate the client and bring the trust deed to an end with the agreement of the creditors. This clause should be inserted into and be part of the trust deed itself.