She didnt go to CCCS

jackie_w

Hi Scaredy,

The money hasnt to be paid tomorrow, apparently she would have to wait until everything was set up with her creditors!!! Im defo not taking my cheque book with me tomorrow.

My mum said that my sister has been up all night worrying about this because I put doubts into her head, but, I was only looking out for her.
Im looking through the internet to try to get as much info as I possibly can on trust deeds.

I dont know if the CCCS will actually help me because when I phoned them yesterday for some advice, the girl said that they wouldnt really be able to help me because its not my debt. However, when I mentioned the £1000 to her, she said she didnt know anything about that, but, she wasnt qualified to get into the nitty gritty of these things, but, she personally thought that that was alot of money for someone who is in debt, and looking for help to pay out, which I totally agree with.

I will just have to wait to see what this man says tomorrow.

Jackie

jackie_w

Hi again George, Ive read all through that, and have tried to explain it to her, but, again, its all just falling on deaf ears.

Jackie

GeorgeUK

Sounds like something you've told her is keeping her awake.
There is nothing stopping her from going over the details with CCCS.

You've probably looked at these already, but...

http://www.nationaldebtline.co.uk/scotland/factsheet.php?page=21_trust_deeds
http://www.insolvencyhelpline.co.uk/paye-employed/trust-deeds-scotland.php
http://www.debtquestions.co.uk/solutions_trustdeeds.php (what are the costs?)
http://www.aib.gov.uk/MainNav/Services/ptd

dancingfairy

Your sister has been up all night worrying because of you? huh? And you're not worrying about her? Maybe things are finally begining to hit home for her? or maybe she's trying to convince herself she's right all along? hmmm.
For everyone's sake I really hope she gets some proper advice - which from the sound of it she's not had - or only heard part of it.
Have you told her the consequences of what this guy is suggesting? I'm sure you have.
Really wish I had some suggestions to help but you can lead a horse to water but you can't make it drink.
Are you still planning on giving her this money as it doesn't sound like you will ever get it back?
Best of Luck trying to sort her mess out for her.
df x

LilacPixie

Jackie

To be honest I would just totally refuse to lend her the 1k. It these times of uncertainty you really should be trying to keep a nice little cusion saved and scattered over as many banks as possible just incase something goes wrong in your own personal circumstances.

I have read this whole thread in one go and from what I can see your sister is just wanting someone else to deal with the problems of her own making. I personally would tell her you can offer emotional support and financial advice but you will not be offering financial support.

Think of this £1000 payment as something she wants but can't afford. If she was wanting it to buy a 50 inch plasma tv and a play station 3 you would be telling her to get on her bike and really there is no diffrence.

I am not a fan of protected trust deeds as I personallyfeelthey are only helpful to a very very small amount of people and often this is not made clear.

On a 24k income with no equity in her home I would say DAS would be the best way forward as she is does not want to go BR. when the PTD fails (and a very high percentage do) then can and will force BR anyway.

Did you also know that whereas interest and charges are froen at the start a a PCD but 8% statutory interest per annum is added on at the end as well as the trustees fees which can easily be 30k??

Idon't have a crystal ball but the house price falls haven't really started in scotland so the chance of houses increasing significantly in the next 3 years IMO is slim to none so exactly what is this 1k for??

jackie_w

George,

I have read through all of the links you gave me, one of them was the one for debt help scotland, and I called them.

Yes, my sister can protect any future equity on the property, however, it would be a nominal fee of £500 (big difference from £1000). and yes, this would protect her against her creditors taking any future equity HOWEVER, it doesnt mean that it will protect her against the trustee from taking any future equity!!!!! The girl from debt help scotland said that my sister needs to get it written into the paperwork, that the trustee will not take any future equity either.

Ive told my Mum this, she said she doesnt understand it, so, ive told her to call debt help scotland, so she can hear from herself, but, she said she wont, she said to leave it until tomorrow and speak to the IP to see what he says then.

Jackie xx

jackie_w

Hi Lilac Pixie,

The girl at debt help scotland said it was for legal stuff/paper work, im guessing the other £500 is for him !!!!!!

Is this why many people say that the trust deeds fail, because at the end of the term, the trustee say they want the equity on the home, and if it cannot be paid, the house becomes sold?

Jackie

coolcait

Hiya jackie

Poor you - sounds like you're getting the whole 'emotional blackmail' thing too (hugs).

As the AiB link (posted by George) says "Signing a trust deed is a serious step - debtors must be sure that they understand what they are signing". That SHOULD give your sister reason to think about it.

The reason you won't have to pay anything tomorrow is that once the Trust Deed is signed, the trustee has to advertise it in the Edinburgh Gazette. It can take them a week or two to get that organised. Creditors have five weeks from the date it is advertised to agree or object to it. If they don't reply, that's taken as consent.

If enough creditors consent (at least half of them; owed at least one third of the total debt), the Trust Deed will become protected. That's the point where your sister will be protected from further action by creditors. It's also the point where the trustee will start looking for money from her (and she will start looking for money from you ).

If enough creditors object, the trust deed will not become protected. This is proof of 'apparent insolvency' and the trustee, or one of the creditors could make your sister bankrupt.

If there is no equity in your sisters property, and she has no other assets, she MUST be proposing to pay a contribution to the trust deed. No trustee would take it on otherwise. She will have to pay it for 36 months. Sometimes trust deeds can last longer than that. I wonder where she's proposing to get the money for that?

There are certain things which a trustee MUST tell someone before they sign a trust deed. they must do this by law. I'll post them up a bit later, but the hungry mouths have just arrived home, and need to be fed :rolleyes: .

Keep your chin up, jackie. Your sister might not appreciate how much you're doing for her, but it's clear to me (and I think to the others on here) that she is very, very lucky to have you looking out for her!

RAS

Did you also know that whereas interest and charges are froen at the start a a PCD but 8% statutory interest per annum is added on at the end as well as the trustees fees which can easily be 30k??

HOWEVER, it doesnt mean that it will protect her again her trustee taking any future equity!!!!!

Putting these two things together - I am guessing that the trustee will release equity to pay the 8% interest and his fees at the end of the Trust Deed?

Do your sister even know about the 8% interest?

jackie_w

Coolcait,


I would be ever so grateful if you would please post the things that the trustee must tell her, because, Im going to be with her tomorrow when the IP is at her house, ive already written down some of the questions that I want to ask him which is:-

1. what is the Statutory interest during the term (RAS, I dont think she knows about this at all, if she does, she hasnt said anything about it)

2. What are the trustees fees and how are they paid (I think my sister thinks, and I did too, that his fees would be included in the monthly amount she pays out).

3. Who is the trustee (think I have that answer, but, I just want to make sure)

4. Debt Help Scotland, say a nominal fee of £500 should only be paid to protect the trust deed, why is he saying roughly £1000

5. Will trustee take any future equity from the home, if not, is this written in the contract, and if not, why not.

6. Is my sis proposing to make a contribution to the trust dee if so, how much, and how is this paid.

Is there any other questions I need to ask?

Jackie