Scottish Trust Deeds Help and Advice

g10drummer · 20 February 2009 at 11:17PM

Hi, my husband and i have £80000 of debt. We have been struggling with reduced payments over the last 9 years and it would be at least another 12 years before we could clear it off if we kept going as we were. My husband is in the army, and i don't work. We have 3 children.

We were adviced to go for a trust deed, so went along to our insolvency practitioner today and signed up. A couple of things are still worrying me a bit though. We had to open a new joint bank account before we set up the TD as we owe our old bank money. I have a separate bank account that i used to put money away for things like car service, birthdays, xmas etc just so that we didn't spend it (but guess what, i always did!). There is only pennies left in the account though, but i don't want to close it as I may not get another one open once the TD goes through! Our IP said that once the Edinburgh Gazette gets published, they may freeze our bank account. Has anyone had their bank account frozen due to the publication in the gazette?

Also, the IP wants a copy of my husband's V5 registration document for his car. Why is this? The car was bought for £2000 last year, and is now worth around £1000. Does the IP have to get in touch with DVLA for some reason?

We have no assets at all as we live in an army house. She also said that any extra daily allowance he gets when he goes away on operations will not have to be put into the TD. I though they would want half of any extra he got!

If anybody could shed some light on these i would appreciate it. xx

siegemaster · 21 February 2009 at 3:40AM

Hi guys, I just need a wee bit of info regarding my trust deed I hope one of you kind souls could oblige! :beer:

Basically, I signed up for a trust deed at the end of November, the ad was placed in the Edinburgh Gazette on the 2nd or 3rd of December - I then received a letter from my IP saying that the 5 weeks had passed without any objections... happy days!

It also said in the same letter that my details would now be passed on to the accountant in bankruptcy to be filed so that the trust deed would become protected - and this is my question... How long does it take roughly from the 5 week period expiring until I could find out if my trust deed has become fully protected?

Also, is it just a formality or could something still go wrong at this stage?

I'm pretty worried about my finances still and until I see in writing that the deed is protected then I wont be able to rest easy...

Also, one of the debts I owed was to an Abbey credit card but it was an old one and was actually owned by MBNA - this was included in my delcaration to the IP but I had labelled it as an Abbey card. This is the only account that I still get regular letters etc from telling me to pay the balance off in full so I phoned them to tell them about my current situation and they said they had never received any notice from my IP and that the details may have been sent to Abbey instead of to MBNA...

Could this hold my case up? Surely it is Abbey's perogative to forward any such details to MBNA?

Sorry for babbling but as I said just still a bit worried about it all...I understand the implications of a trust deed and all the circumstances surround it but just the intricacies and times scales baffle me.

Any advice on my above questions would be much appreciated. :T

scottieb · 21 February 2009 at 4:15PM

siegemaster wrote: »

Hi guys, I just need a wee bit of info regarding my trust deed I hope one of you kind souls could oblige! :beer:

Basically, I signed up for a trust deed at the end of November, the ad was placed in the Edinburgh Gazette on the 2nd or 3rd of December - I then received a letter from my IP saying that the 5 weeks had passed without any objections... happy days!

It also said in the same letter that my details would now be passed on to the accountant in bankruptcy to be filed so that the trust deed would become protected - and this is my question... How long does it take roughly from the 5 week period expiring until I could find out if my trust deed has become fully protected?

Also, is it just a formality or could something still go wrong at this stage?

I'm pretty worried about my finances still and until I see in writing that the deed is protected then I wont be able to rest easy...

Also, one of the debts I owed was to an Abbey credit card but it was an old one and was actually owned by MBNA - this was included in my delcaration to the IP but I had labelled it as an Abbey card. This is the only account that I still get regular letters etc from telling me to pay the balance off in full so I phoned them to tell them about my current situation and they said they had never received any notice from my IP and that the details may have been sent to Abbey instead of to MBNA...

Could this hold my case up? Surely it is Abbey's perogative to forward any such details to MBNA?

Sorry for babbling but as I said just still a bit worried about it all...I understand the implications of a trust deed and all the circumstances surround it but just the intricacies and times scales baffle me.

Any advice on my above questions would be much appreciated. :T

Hi siegemaster,

From 1st April 2008, the date of protection for a trust deed is the date it is registered by the Accountant in Bankruptcy's office as protected.

The deadline for valid objections from creditor(s) is five weeks from the Gazette date. Assuming objections received from no more than one third in value, or a majority in number, the IP should be sending the protection documents to the AiB as soon as possible after the valid objection period. In practical terms, the IP should send the protection documents to the AiB within two or three days of the five weeks expiring at the most. AiB are tending to register trust deeds as protected within a couple days of receiving the documents from the IP. So, I would hope that within a week at the most of the five week period elapsing, your trust deed will have been registered as protected.

A phone call to your IP to ask them to confirm that it has been registered as protected should be sufficient - they will be able to confirm for you, as the AiB notifies them that is has been successfully registered.

You can also search the register of insolvencies yourself, however there is a fee for doing so, so perhaps not worth the expense.

Regardless of whether the IP has contacted Abbey/MBNA/both, if the valid objection period has elapsed, then Abbey/MBNA cannot now object to it. The reason for the Edinburgh Gazette notice is to alert ALL creditors, including those who the IP may not know about.

If MBNA are still chasing you, you should pass on the relevant account details to your IP who will contact MBNA and advise them about the trust deed. Once registered as protected, there is no further enforcement action your unsecured creditors can take, so they are wasting their time chasing you. However, until they update their own records about the trust deed it is not surprising that they are still doing so. A letter from the IP should put an end to that.

Hope that helps.

Over_the_Edge_2 · 21 February 2009 at 5:01PM

g10drummer wrote: »

Hi, my husband and i have £80000 of debt. We have been struggling with reduced payments over the last 9 years and it would be at least another 12 years before we could clear it off if we kept going as we were. My husband is in the army, and i don't work. We have 3 children.

We were adviced to go for a trust deed, so went along to our insolvency practitioner today and signed up. A couple of things are still worrying me a bit though. We had to open a new joint bank account before we set up the TD as we owe our old bank money. I have a separate bank account that i used to put money away for things like car service, birthdays, xmas etc just so that we didn't spend it (but guess what, i always did!). There is only pennies left in the account though, but i don't want to close it as I may not get another one open once the TD goes through! Our IP said that once the Edinburgh Gazette gets published, they may freeze our bank account. Has anyone had their bank account frozen due to the publication in the gazette?

Also, the IP wants a copy of my husband's V5 registration document for his car. Why is this? The car was bought for £2000 last year, and is now worth around £1000. Does the IP have to get in touch with DVLA for some reason?

We have no assets at all as we live in an army house. She also said that any extra daily allowance he gets when he goes away on operations will not have to be put into the TD. I though they would want half of any extra he got!

If anybody could shed some light on these i would appreciate it. xx

We are now in month 3 of our IVA.

Who's IVA is it your husbands or both of you...

If it is just your husbands then your own Bank account will be okay.

As we had a joint account we did have to very quickly setup a new one with another bank. You need to do this if you owe your bank any money as they will just take it straight from your account even if it is a joint account.

Having said that we still have our old account, haven't paid anything into it for 3 months now and they haven't said anything and even renewed the overdraft we had.

Start this ASAP as you will find hard to get another account, we were turn down by HSBC but got one with The Abbey.

If the car is £1000 or over then I am afraid it is gone, try to get it valued so that it is under the £1000 and let your IP know.

Don't know about the allowance but since it is not fixed then you should press for it to be half the amount.

Hope that helps.

Over the Edge

g10drummer · 21 February 2009 at 5:57PM

Yes we have signed a TD in both our names, as we have joint debt plus debt in each of our names.

We have already set up a new account with the Abbey, which we will be using for day to day living. The other Lloyds account in my name isn't used at the moment and there is only pennies in it, to keep it open. I didn't tell my IP about the LLoyds account at the time, as it is not an account we use.

Not sure exactly what the car is worth, prob around £1000, but our IP put £1000. I still don't understand then why they need the V5 form. We know a few people who had PTD an none of them have been asked to submit their vehicle registration form.

Thanks

scarednshakin · 25 February 2009 at 1:51PM

Okay, here goes. OH has finally got in touch with Payplan and had long conversation with them today, they have advised that he takes out a Trust Deed. Can you advise what is involved? We are due to get a phonecall tomorrow from a company who will advise him further. Just want to know what happens with a Trust Deed? Any help would be appreciated, thanks

scarednshakin · 25 February 2009 at 5:40PM

Just came home to a message from KPMG, so looks like they will be sorting out the details of the Trust Deed. Any info would still be greatly appreciated.