Scottish Trust Deeds Help and Advice

coolcait

Hiya laguna

Have you had the chance to speak to someone about your debts at all? It can be a great help to talk to someone - whether it's face to face at CAB or the local authority money advice people, or over the phone with an organisation like National Debtline. They can look at your income and expenditure with you, and go through your options.

It might be that a Trust Deed is the best option for you - but none of us know enough about your situation yet to say one way or another. However, any debts you owe at the time you sign a Trust Deed, or if you go bankrupt, have to be included in the Trust Deed or bankruptcy. The same holds true for the Debt Arrangement Scheme (DAS).

If anyone akss you why you took out that extra loan, I think that you could just tell them what you've told us - most people will understand where you're coming from.

Choo_Choo_4

Laguna - I would have to reiterate what Coolcait has said in that you cannot leave a debt out of a legal arrangement like a Trust Deed or DAS.

Usually it would be thought that the debt would have to be at least 6 months old before entering into an arrangement like a Trust Deed - which company is the loan with if you don't mind me asking?

Basically I assume the loan you took out was for about £2k (you say it brought your total debts to £39k) so it will be a minimal % of your total debt (5%) - but if you have larger debts with same creditors that would increase this % to more than 33% of total debts then this could very well have a bearing on whether or not Trust Deed would become Protected...

I would be worried that if you were having difficulty paying into a DMP (which can sometimes have lesser payments than TD) that you might also struggle with Trust Deed.

What was your payment in DMP?

Daveed

Hi Guys,

I have been in a trust deed since March/April 2007 (Think it became protected in June 2007, so thats when the 36 months start....am I right?)

Anyway, obviously I am due to finish up this year some point, now my TD got extended by 3 months as I had made more than I declared for a while, due to my line of work having commision as part of my pay. I knew at the time I was making more than I had declared and I spent the extra cash so I'm comfortable with this. Now assuming I dont have any further extensions am I correct in saying it should finish after the 39th payment since June 2007 in my case? This is expected to be on Oct 1st according to my IP. And at that point I should cancel the DD?

Having read through this thread it has been a bit of an eye opener regarding how it finishes. I expected a call from the IP around the time it finishes to confirm it was finished, a wee pat on the back and and on your way. Didnt expect that you yourself had to cancel your DD and then potentially wait months for written recognition that it was done.........

Anyway, another query, I am waiting to start a job subject to a credit check. Now I declared my position to them, and when I spoke to someone at the company I said that the trust deed wasnt full bankrupcy or anything, and they said thats fine as long as I wasnt actually made bankrupt then there should be no problems with the credit check. Does anyone in the know a bit more than me think I should be ok?

Cheers in advance for any answers.

laguna_1

thx for ur advice cool cait and choo choo.

unfortunately i had a car crash and was signed off sick from work for 4 months. Due to only getting paid ssp by my work it totally screwed my finances.

i needed the money to pay off friends loans and also catching up with the rent and a lot of other arrears.

Unfortunately though i have not paid my dmp at all.

the loan isn't linked to any of my other debts....in terms of total debt th biggies in mine are 25% egg 25%mbna and the rest wit other players.

really think trust deed might be a better option, im back at work now and everything going ok...

just think if they have a creditors meeting and that one persn says he just took out a 2k loan and spent it all and none of it was on the other debts, it could look bad

i can provide a doctors letter to confirm this is the case, will this help with the trust deed becoming protected at all! may look favourable on me a bit more..potentially.

the loan i somehow managed to get was thru abbey!

kt67

Hi

Can someone help!

I have been in a protected trust deed since 2006 which was due to end August 09 when i paid the last of my £100 monthly installments. As i had missed 3 payments my final payment was December 09. I received a letter saying i would be discharged on 24th Feb 10.

I have now been told by the trust deed company that i will not be discharged until they receive half the equity from my ex-partners house.

I split up with my ex-partner 18 months ago. Until December 09 i was under the impression the house we lived in was in his name, as the mortgage was solely in his name. It turns out my name is on the title deeds!

The house is ready to be repossesed as the morgtage payments are in arrears. My ex-partner was made bankrupt.

Has my trust deed legally permitted to hold off discharging me? I'm at my wits ends. I cannot get through to speak to my trust deed and he will not return my calls.

Help!

G_from_Scotland

Hi guys
I am 6 months into a TD. I have since moved in with my partner but also lost my job. I have managed to keep my payments up with my TD via family help thankfully.
Anyway - my concern is now that I have moved in with my partner - that her income is taken into account and they ask for more. She owns her property and we are in no way whatsoever financially linked (not on mortgage, no joint accounts nor loans) - however on the form I have to fill in with my financial update they are asking what my relationship is to the other person and also what their level of income is. Does anyone know why they ask this and what the effect is on my answer?
Thank you
G

Choo_Choo_4

laguna_1 wrote: »

thx for ur advice cool cait and choo choo.


the loan isn't linked to any of my other debts....in terms of total debt th biggies in mine are 25% egg 25%mbna and the rest wit other players.


just think if they have a creditors meeting and that one persn says he just took out a 2k loan and spent it all and none of it was on the other debts, it could look bad


the loan i somehow managed to get was thru abbey!

Well Laguna ... first thing to note is that there isn't a meeting of Creditors in a Trust Deed. What happens basically is that you would have the meeting (possibly over telephone if you're renting) and a face to face meeting if you have a mortgaged property ... then if a Trust Deed seems like a suitable option for you and both IP and YOU are happy to continue with this they would probably request some documents from you and then draw up the actual Trust Deed for you to sign.

This is then advertised in the Edinburgh Gazette and sent to ALL your creditors who then have a 5 week period in which they can accept / reject it - but rejections must be received IN WRITING within the 5 week deadline and for a Trust Deed to fail to become protected more than 33% of your creditors must reject it.

Sounds like you've had a tough few months Laguna and I'm sure an IP would look a little more leniantly on this but you would be agreeing to stop taking further credit for 3 years by signing a Trust Deed.

laguna_1

aah starting to make more sense now

is it 33% in terms of value or physical number of creditors as it would be a shame if the creditors i owe very little too in the grand scheme of things say no too it and because of that it doesnt get protected

there does seems a way out of this tho...trust deed

yea its been very hard going for a while now...time to turn things round...

Choo_Choo_4

laguna_1 wrote: »

aah starting to make more sense now

is it 33% in terms of value or physical number of creditors as it would be a shame if the creditors i owe very little too in the grand scheme of things say no too it and because of that it doesnt get protected

there does seems a way out of this tho...trust deed

yea its been very hard going for a while now...time to turn things round...

33% in value is correct yea ... basically if you had £20k debts and owed £11k to Bank of Scotland - if they were to reject it would mean the Trust Deed would not become Protected. Any decent Insolvency Practitioners will explain all of this IN DETAIL with you during meeting .. should discuss the voting behaviour of creditors etc but they will never be able to guarantee anything!

Choo_Choo_4

gillianr2 wrote: »

Hi everyone,

Been away fo a few days trying to sort things out a bit. Well dh ad I are back together and we are seeking couple counselling to work through things. Financial pressure is one of the main points we have been worried about. Dh asked for a wage rise at work and was basically told no so he is starting to look elsewhere but in this market there is probably no chance of getting anything else anyway.

He also wants to look at doing some kind of training at college but after posting on the benefits board that looks unlikely as it would not be financially viable for us.

A little bit of good news is that my ESA has gone up as I am now out of the assesment phase and I have been placed in the support group so that's a little over £30pw more. It also looks like we will be entitled to another £140 per month tax credits than I thought so in total that's boosted our income by £260 per month which is a big help. Dh called the ortgage and we have to pay £200 this month instead of £470 and he is to call back in March to see if they can do the same again. He also asked about selling the house and they will get back to him on this (we are in negative equity). Not sure about selling though as rent would be about the same as the mortgage so probably best hanging on to the house if poss and try to ride it throught the trust deed.

I sol a few things on ebay last week and got £200 plus I took some old jewellery to cash for gold and got £90 for that. Dh's mum gave us £300 this month to help out too.

Just thought I would update on how things are going for us now.

All in all it seems to be fairly good news Gillian

Make sure that if you go ahead with the Trust Deed that the negative equity is addressed in the Trust Deed at the very beginning. Basically you (a third party) would be asked to pay £500 to cover the interest in the property ... as you might realise from previous posts on this forum there are Trustees out there who prefer to hold off on valuing properties in the hope for more money to be brought into the arrangement but most IPs will have it valued at the very beginning so that it will confirm (in this instance) negative equity and therefore no equity release ...

Once the £500 is paid the property is safely yours - they cannot go back on that (unless you no longer want to hold on to property - but as you say if rent is going to be the same then no benefit is giving it up)

Good Luck Gillian!