Scottish Trust Deeds Help and Advice

coolcait

kev1980 wrote: »

Hey Everyone

Just heard that my Scottish Trust Deed has received protected status!!

:money:

Congratulations, kev!! :T :T

Peace of mind - you can't ask for a better Christmas present than that!

:beer:

coolcait

Brownie, if you're still reading, can you let me know if you managed to read my earlier post before it was deleted?

If you did see it, that's fine, and I hope you got something out of it.

If you didn't see it, could you let me know, and I'll try to gather my thoughts again, and try to put them on paper in a way which doesn't breach the guidelines laid down in the thread on the Feedback board. Not that I have any idea why my post was deemed to have breached those guidelines, as the vast majority of it (which was pretty 'vast'!! ) was talking about your trustee's actions rather than the actions of any other organisation.

I don't want to go against MSE edicts; I don't want to leave MSE open to threats of legal action. Mostly though, I don't want to leave you without any suggestions at all about how to deal with the problem you're facing.

J4mesg

Hi new to board, early hours of xmas morning and im sitting reading about trust deeds!! merry xmas anyway!!

anyway, quick query guys

i was thinking about going for a trust deed, but dont know how it will affect my flat etc.

got around 8k equity in flat, Got a 30k joint loan with my ex, (was part of NR together mortgage, we split and couldnt clear the loan part so NR kindly doubled our interest up to 15% which doubled our payments to 400 per month, we pay 200 each) also a joint 2k overdraft, ive got a 2k credit card and 4k loan.....is there a chance i could lose my home? can i include the joint debt?

Thanks for your time

J

Mr_Softy_Top

kev1980 wrote: »

Hey Everyone

Just heard that my Scottish Trust Deed has received protected status!!

:money:

Nice one Kev. :T Got mine protected last week too. Such a relief when that bit of paper came through.

kev1980_2

J4mesg wrote: »

Hi new to board, early hours of xmas morning and im sitting reading about trust deeds!! merry xmas anyway!!

anyway, quick query guys

i was thinking about going for a trust deed, but dont know how it will affect my flat etc.

got around 8k equity in flat, Got a 30k joint loan with my ex, (was part of NR together mortgage, we split and couldnt clear the loan part so NR kindly doubled our interest up to 15% which doubled our payments to 400 per month, we pay 200 each) also a joint 2k overdraft, ive got a 2k credit card and 4k loan.....is there a chance i could lose my home? can i include the joint debt?

Thanks for your time

J

Merry Christmas!!

I was just having a wee look online and noticed your post.

Ok, let me say first of all that a trust deed is a serious step and should not be taken lightly nor should it be taken without speaking to the CCCS or someone else who can give you financial advice.

In my case it was the CCCS I spoke with together with help of a money advisor at my local council.. Both of whom were excellent.

If a trust deed is recommended for your situation then the the trustee has a legal obligation to go through all the different options available to you before you sign a trust deed.

In my situation a trust deed was the best soloution as I did not have any assets and the equity in my flat at the time of signing the trust deed was very low.

If you decide to go for a trust deed the equity in your flat has to be realised for the benefit of your creditors this can be done at any time throughout the course of the trust deed, i chose to deal with it at the end and I have been informed that the equity agreed at the start of the trust deed will be frozen and must be paid into the trust deed account 6 months before the end of the trust deed, after this is paid the trustee will have no further interest in your flat so long as you co-operate with your trustee throughout the term of the trust deed.

The options available to you to get the equity could be a remortgage, a friend or relative paying it or doing overtime, but i must stress that if you do overtime the trustee is entitled to 50% of the overtime which must be paid into your trust deed account.

Hope this is of some help :money:

kev1980_2

Mr_Softy_Top wrote: »

Nice one Kev. :T Got mine protected last week too. Such a relief when that bit of paper came through.

I felt exactly the same when it came through in the post.

coolcait

J4mesg wrote: »

Hi new to board, early hours of xmas morning and im sitting reading about trust deeds!! merry xmas anyway!!

anyway, quick query guys

i was thinking about going for a trust deed, but dont know how it will affect my flat etc.

got around 8k equity in flat, Got a 30k joint loan with my ex, (was part of NR together mortgage, we split and couldnt clear the loan part so NR kindly doubled our interest up to 15% which doubled our payments to 400 per month, we pay 200 each) also a joint 2k overdraft, ive got a 2k credit card and 4k loan.....is there a chance i could lose my home? can i include the joint debt?

Thanks for your time

J

Hiya J

Kev has already given you some good advice about trust deeds. :T

One thing I'd flag up is that Northern Rock are pretty notorious for not agreeing to Trust Deeds. If you owe them more than a third of your total debt, and they object to the trust deed, then it won't become 'protected'. And that means that Northern Rock - and any other creditors who objected to the trust deed - can still chase you for their money, including through the courts. Worst case scenario, you could end up bankrupt. (All of this can happen in any trust deed, but it's much more likely if you have NR as a major creditor).

I'd repeat Kev's advice to speak to an organisation like CCCS and/or your local CAB or local authority money adviser, to go through your options. I really think that it's a great first step - even if you end up disagreeing with the advice you're given. It gives you the chance to think through what's right for you.

Good luck whatever you decide!

fatgit

Hey everyone

Glad to see there is a half decent thread on Trust Deeds on MSE now.

I am over halfway through a Protected Trust Deed (PTD) now so if anyone wants to ask some advice then feel free. I did not own any property at the start of my TD, so I am afraid I have no experience when it comes to equity in property and what happens to it during a TD.

I do know that one of the points I worried about most was my change in circumstances during the PTD, as the Insolvency Practiotioner (IP) asks for a Statement of Affairs (ie Income and Expenditure) every six months AND every time your circumstances changes, for example, increase/decrease in salary.

Unfortuately, there are some crooks out there so I urge anyone to research this step very, very carefully as it is a MASSIVE step to take.

That said, my life really has changed for the better since entering a PTD. I really do see the light at the end of the tunnel now and the time has actually flown in! In a couple of months it will be two years since I agreed to the Trust Deed and it doesn't feel like it at all. It hasn't been plain sailing all the way but I know for sure it has been a damn sight easier than juggling the ridiculous debt I had to numerous creditors. I feel my particular IP has been accommodating to certain changes in my circumstances.

There's only one downside I would say really - at the minute I am earning an ok salary. I know I am capable of a job earning £8 - £10k more per annum but I wouldn't want such an increase in salary if it was simply going to be absorbed by the PTD. Circumstances at the minute are more than okay, so I'm going to sit tight for another 9 months or so until I make the break for a higher earning job. Besides, I really enjoy my job, it is relatively secure given the current volatility in certain sectors just now and I feel I can sit tight for a while.

Anyway, feel free to ask questions folks - happy to receive PMs too if you want.

tiggerbabe16

Hi can I ask a question along similar lines - if you would prefer I started a new thread i am happy to do so

My boyfriend has a mortgage, but I rent my house. We will hopefully be looking to buy together when the market has sorted itself out a bit, however, I was subject to a Trust Deed until it was finally discharged in October '08.

I have been checking my file monthly for some time to ensure that I catch any wrongly reported information as soon as it appears, and also that records of my TD now being discharged have been updated correctly.

I know that all the debts that I ran up before taking on the TD will still appear until January 2011 (being 6 years after the date of signing the TD), but I obviously have no debts at all now, apart from two mobile phone contracts which I pay in full by DD every month and have done so for over a year now.

Can anyone advise how badly this will affect a joint mortgage application in the future (ie. if we want to buy earlier than 2011)?

I don't want to hurt my boyfriends creditworthiness by having a financial association with him, when he has no credit problems.

This is really preying on my mind at the moment as whereas you could get mortgages in the past, I heard that 61% of mortgage applications were turned down in the last few months so I don't want him to risk giving up his sole mortgage and trying to get a joint one if there is absolutely no way we could get one - even though I know we could afford it now no problem!

It is so infuriating that things that happened such a long time ago still go against you even if your circumstances have totally changed in that time :rolleyes:

ps. Entering into a TD was the most relieving moment of my life and I would recommend it to anyone - just ensure that you go to a registered insolvency practitioner recommended by the CAB or similar. (I used Peter C Dean and had absolutely no problems, easily reduced my payments when I had to switch from full time to part time to let me get back on my feet.)

l4ne2008

Hi tiggerbabe 16

I have a trust deed with Peter C Dean which is due to finish May 08. I hope you don't mind me asking but did they contact you before your trust deed was due to finish. I'm asking this because I've read on other forums that it can take some months to be given a discharge letter. If this is the case do your payments automatically stop after 36 months as I believe in certain circumstances you can be asked to make additional payments. My trust deed does not invovle any house equity & all payments have been made on time. Thanks for any advice given & good luck to all going through the trust deed process.