Scottish Trust Deed

coolcait

Hiya JK11

Thank you for sharing a different view of trust deeds. As I said in my first post (more or less!) trust deeds must work for some people, given the numbers that are signed each year. We may have to agree to disagree on some points - given our different experiences

From an information point of view only (NOT recommending bankruptcy/sequestration to anyone!) the procedures for making yourself bankrupt in Scotland changed in April this year. You no longer have to go through the courts. You fill in your forms, pay your £100 fee, and send it all off to the Accountant in Bankruptcy.

It IS possible in some cases to apply for bankruptcy even if no creditor has taken action against you. If you are on a low income (less than minimum wage and/or receiving income based benefits) and have low or no assets, then you can apply for bankruptcy on that basis.

A number of people on this forum have done so. So did someone close to me. IMO all of them had genuinely reached a stage where bankruptcy was their only option (trustees won't let you sign a trust deed unless they're going to get their fees back; if the creditors get something too, all well and good - sorry, cynicism again!). I don't think that it was 'a whim' for those people to make themselves bankrupt.

That said, I have to agree with you that it could be possible for someone to deliberately run up debts and then make themself bankrupt to avoid having to pay. I can only hope that they'd be caught out at some point :eek:

On a cheerier note, congratulations on the forthcoming happy event! :beer: Enjoy this very special time (and having the chance to sleep ). All the best!

kev1980_2

Hi Guys!!!

Listen thank you very much for all the replies!!!! :money:

I've got my DAS interview next week with the local council approved money advisor.

I know DAS will take me longer to clear the debt but will safe guard my home from any court action.

The Trust Deed is also good that it will clear the debt after 3 years...

My head is in a right pickle!!!

kev1980_2

Never_Ever_Again wrote: »

I am currently in a Trust Deed and although I have found it tough I have somehow managed over the past 2 3/4 years (final payment Feb 09!! ) Luckily the only think I own that could be taken from me at the end of my TD is my car but I reckon it is now worth less than the £1000 they said it would have to be worth for them to be interested in the money for it.

Kev1980 - good luck with the DAS interview ( it does sound a better option) but if you do decide to go down the TD route I would definately recommend calling Invocas. This is the IP I am with and they have been brilliant, if I ever have a problem I have a number to call to speak to the IP dealing with my case, if they are unavailable when I call they always respond within 24 hours.

Good Luck
NEA

Thanks for your reply

JK11

Hi coolcait, thanks for your reply. I didnt know about the change in April, so thanks for that info. Out of interest, what does "low or no assets" mean? I presume owning a house (i.e. not a low value asset) would prevent someone like Kev1980 from applying for sequestration unless creditors had taken him to court?

Hope I didn't cause any offence (certainly didn't meant to) I didn't mean to be flippant when I mentioned people making themselves bankrupt on a "whim", was just trying to point out to MillieMonster that taking the bankruptcy option wasn't as straight forward or as carefree as he/she seemed to be suggesting. In my experience, the option of the trust deed was far better for my girlfriend than bankrupty was likely to be. The fact that we are both sat in a lovely house just now which we own (well, the bank owns, but you know what I mean!) is testament to the fact that trust deed was the best thing for her/us.

Thanks for the good wishes re baby - I have brothers and sisters who have young children and am only too aware of the sleepless nights - off to bed now to take advantage of the peace whilst we can! :-)

gingerjasper

I've just entered into a Debt Arrangement Scheme (DAS) to pay off my £34000(!!) debt. Personally this has been the best option for me, I have around £25000 equity in my home that I really didn't want to lose (and half of which belongs to my ex partner, so it would have been very complicated). The DAS means I pay back everything I owe, minus interest and charges, which actually makes me feel better - at least I'll pay back everything that I borrowed. It's going to take nearly 8 years, but at least I don't have the worry every month - I'll be paying £363 instead of the current £800. So glad I moved to Scotland a year ago, I wouldn't have had this option in England!

kev1980_2

gingerjasper wrote: »

I've just entered into a Debt Arrangement Scheme (DAS) to pay off my £34000(!!) debt. Personally this has been the best option for me, I have around £25000 equity in my home that I really didn't want to lose (and half of which belongs to my ex partner, so it would have been very complicated). The DAS means I pay back everything I owe, minus interest and charges, which actually makes me feel better - at least I'll pay back everything that I borrowed. It's going to take nearly 8 years, but at least I don't have the worry every month - I'll be paying £363 instead of the current £800. So glad I moved to Scotland a year ago, I wouldn't have had this option in England!

Thanks for sharing this with me..

I'm due to have my DAS interview on Tues 14 October.

I've been in touch with KPMG as well and it look like the best options for me are either a Trust Deed or the DAS.

I don't have as much equity in my property as you so maybe a Trust Deed is my best option......

My head is still all over the place with this and really need to get something sorted by next week.

kev1980_2

DAS interview today at 10:30am!!!

Looking forward to getting this debt in order.

Will let you all know how I get on.

sam89

Almost 10.30 now.

Fingers crossed all goes well for you.

Sam,
x.

kev1980_2

Hello All,

Well I had my interview with the DAS approved money advisor today and she was excellent.

I've signed a document which means whilst the DAS is being set up creditors can take no legal or court action.

The money advisor is going to write to all my creditors with mt repayment proposals and they have a certin amount of time to respond on whether to accept the reduced payments or object them...

If they don't reply they are deemded to have accepted the reduced payments and if they object the DAS Administrator who is the accountant in bankruptcy reviews it and decides if it is fair and reasonable, if the repayment is fair and reasonable then he or she will over rule the creditors objection and the DAS DPP ( DPP - Debt Payment Programme ) will be set up and have the full backing of legislation.

Creditors can take no form of legal action and must by law freeze/stop all interest and charges.

I think the DAS and the Trust Deed scheme in Scotland is a very powerful piece of legislation and its certainly took a lot of preasure of me.

I feel ready now to really really concentrate on clearing my debt with the added bonus that no more interest or charges can be added to the existing debt!

GeorgeUK

Good luck with this Kev. Glad it seems to be moving tin the right direction.

If you've already done the SOA and stuff, keep updating us and hopefully you'll be seeing the debt crunble away.