Scottish Trust Deeds Help and Advice

Choo_Choo_4

jackie0705 wrote: »

Hi

Can you tell me if Child Tax Credit not working tax counts as income.

I understand child benefit does not count - can yo confirm

Thanks

Jackie

Hi Jackie - any form of money coming into the house is included in your household income whether that is income from a f/t or p/t job, child benefit, child tax credit, working tax credit, pension, income support etc ...

Choo_Choo_4

gillianr2 wrote: »

Hi,

I was wondering if anyone knows anything about paying off a trust deed early?

My husband is in one but his trustee is unfortunately awful and not much help at all tbh. We are not in a position to pay is off just now but if we were to ever be in theat position what would happen? Would they accept the 36months payments up front as a lump sum or would they want all the debt back (huge difference between £11500 and £56k!!!).

Any advice would be great.

It really depends on how you have arrived at being able to settle the Trust Deed early and in full.

If you win the lottery or a lump sum then this would have to be declared to your Trustee and you should have been advised at the time of your meeting that any inheritance or the likes would be treated as a windfall and would have to be brought into the Trust Deed for the benefit of your creditors...so in this instance you would then have to pay total debts

If you have a family member / friend who would be willing to offer you or your husband the money to clear your Trust Deed early then this can certainly be accepted and your Trustee should be delighted to finish it early. However this would all have to be confirmed as proper - in that the money would have to be seen to come from one account (whoever is offering the money) into yours and proof of this provided to ensure that it is all legal and above board.

I don't know why your Trustee is being unhelpful Gillian - you could even try speaking to one of the other members of staff in the company ... this should already have been explained at the time of the meeting anyway but do ask again or if you think this is something that might arise in the near future explain this to them and they should be only too delighted to help you on the way to an early Full & Final :j

Good Luck!

zebade

Just a quick question.
What happens at the end of a trust deed, do i have a meeting with my IP, or is it just a discharge letter through the post.
I pay my last payment in May this year so just trying to get an idea on what happens next based on others experiences.

Thanks in advance.

missiemog

i just got a letter confirming everything was finished, and a statement to that effect.

Choo_Choo_4

gillianr2 wrote: »

Would the same rules apply if I had an inheritance or came in to money as it is his trust deed not mines? Would I be able to keep any money I cam ein to and just pay off the remainder of the TD or would they take anything I had off me to cover it?

No - if you come into money by way of inheritance etc then this money is yours. Trust Deeds / Bankruptcy in Scotland are all carried out on an individual basis (i.e. you cannot do a Joint Trust Deed) so this will have no effect on your husbands TD.

His Trustee CANNOT ask/demand that this money is brought into his TD.
You can choose to spend this money however you wish. If you would like to end the TD early then of course this is an option.
Might be an idea to offer a FULL & FINAL ... e.g if there is £11,500 owing on the Trust Deed then you might think about approaching the IP to offer £8k or £9k as an early settlement - it's nice to get paid immediately rather than having to wait another 20 months ...

She may not accept this but if you can afford to pay it all off then it's worth chancing your arm at a lesser settlement first...if it's not your husbands money at the end of the day there's no harm in asking.

I don't know either why she is so unhelpful, I did try emailing her associate who had always been really nice and very helpful but we soon got an email back from his trustee saying not to contact anyone else other than her as she is his trustee and that any questions he might have should be put to her in writing only. She is very blunt.

Very blunt indeed. It's the first instance I've heard whereby IP deals with all clients on an individual basis?! Most Insolvency Firms appoint a case manager (even after TD/IVA in place) - IP's are usually too busy to be dealing with the easier stuff ...

One last thing - just make sure that this money IS just in your name because if your husband's name is on it at all then his 50% would be required to be brought into TD

G'Luk!

Choo_Choo_4

Ur welcome Gillian.
I hope things work out for you

beanielou

I dont know but to me it would show that you are taking responsibility.

Choo_Choo_4

gillianr2 wrote: »

Actually I have one last question. Will having a trust deed affect adopting a child? We probably wouldn't be going down that route until after the end of the trust deed or at least 1year in to it but wondered how that would effect things?

Hmmm, that's a tough one Gillian and to be perfectly honest I wouldn't be 100% sure. I would say that there would be highly stringent disclosures requirements and checks under the adoption process which could include financial checks where a Trust Deed might show up.

It might be best to check this out with the adoption agency first yourself - of course you could do this anonymously and this way you would be able to get a definitive answer.

It might be something that would require some questions to be answered BUT whether it would affect your suitability as Adoptive Parents I'm not sure ... I would say it's a bit harsh to say that you wouldn't be able to adopt due to the fact that you ( or your other half ) signed a Trust Deed a number of years previous.

I really hope you get the right answer from Adoption Agency - and now I'm curious so please let me know if you do find out (or if someone else can confirm) x

beanielou

Can i just say gillian that you are not liable for any debts in your husbands name ie the trust deed or the mortgage as they are both in his name.
HTH

Choo_Choo_4

Gillian, first and foremost I am so sorry to hear that you've split.
It's not the way you had thing panned out and unfortunately financial worries can put a massive strain on a relationship

But don't panic - I know that your life has turned upside down over the last week or two but with regards to your financial situation, not an awful lot has changed.

Beanielou is right - you should not be paying anything into the Trust Deed if it is only in your husbands name. It's relating to his debts and insolvency in Scotland is taken on an individual basis so his IP would have needed to show that he could afford the Trust Deed on his own (in case something like this would happen) .... but I know what you mean when you say you want to keep paying because you benefitted from the debts that were in his name - that's very honourable of you - most people dig their heels in at times like this...

BUT now you both have some thinking to do and now your husbands IP will have to give him some answers. He needs to call the company and advise of the changes and the fact that the house will have to be sold and his Income & Expenditure will have to be revised due to the fact that he will now be trying to manage on his own wage.

The house is in negative equity so nothing to worry about there - it's probably more of a hindrance to you at the minute because neither of you will be able to afford the mortgage on your own - creditors won't pursue it because there's no value in it for them.

You do not need to pay this £170 towards his Trust Deed - you cannot afford to. There's nothing wrong with admitting this - it's the truth.
He NEEDS to contact company managing his Trust Deed and get things sorted .. he will no longer be able to afford what he WAS paying and may need to lower payments (which might in turn extend the length of Trust Deed) or it might be better to fail the Trust Deed and await sequestration (bankruptcy) - obviously presuming that this would NOT affect his employment ???

Are you on speaking terms? Can you both sit down and discuss what you might do? If bankruptcy does not affect his employment then it might be a better option for him at this stage unless his Trustee can offer alternative solution/reduced payments without having TD go on forever ...

I'm not sure if you were expecting to come into money any time soon (from earlier posts) but just be careful with this Gillian. Remember that if you do this will be YOUR money and if you have to set up on your own you will need this ... but it's up to you however you manage it - just know that you are not liable for any debts that are not in your name!!!

Good Luck - I hope things work out for the best for you! x