Anyone in a Protected Trust Deed went Bankrupt??

m4ndd

Hi

Husband and i been in a Protected Trust Deed for 18 months but he has just lost hundreds of £s each month in salary as his employer is suffering with poor market conditions.

No longer able to survive. Stopped paying mortgage, huge secured loan etc. Also stopped paying my Trust Deed and explained why to Trustee. We have secured rented accomodation and are leaving the house for repossession. I was under the impression the Trustee had to force us into BR, that is always what she had threatened before when we have struggled. Now they state they have to decide what they are going to do....mortgage company likely to petition for our BR. The cynical part of me wonders if this is so as they can avoid paying the court fees.

Spoke to AIB helpline today and they said that Trustee has to petition for our BR or terminate the Trust Deed and disassociate themselves from us and the creditors covered. Thus meaning we are no longer in an insolvency agreement and can petition for our own BR.

Anyone else been through this?

Thanks

Amanda

m4ndd

^^^ bump ^^^

So_Sad_Angel

Hi Amanda

I don`t know the answer I`m afraid but did`nt want to just read & run.

There are some Scottish experts around. Have you called CCCS/CAB etc to get their view on the situation?

Well done on getting the rental sorted & sorry to hear that your OH income is falling....there will be many in that situation in the current climate.

Angexx

m4ndd

Hi

Thanks for your reply.

CAB never answer in my area. Spoke to CCCS and they said they couldn't give me any advice on Trust Deeds...thought this was a bit odd! They referred me to AIB.

Amanda

m4ndd

Just spoke to Trustee and she said that as we are in the TD they won't sequestrate husband and i. This is the advice she has taken from her manager.

When i challenged this and said that they have the option of ending the TD she started to stumble. Said the creditors have to be asked about this and they may refuse and ask for a reduced contribution instead. I said that due to our circs we won't be able to make any payments to the TD at all, so then what?

We have made £8,000 payments between us to the TD's already so why won't they just take their fee, pay for our sequestration and then divy up the rest to the creditors? Trustee mentioned again about repossession and someone else sequestrating us. Very much seems like they want to sit back and wait but the ideal situation for us is to be released from the TD so as we can petition for our own sequestration.

Curse the day i entered the flaming thing....considering the HP we had plus secured loan it was a stupid thing to do.

coolcait

Hiya

I read your post last night, and have been fuming on your behalf ever since! It really sounds like the trustee is being deliberately unhelpful.

Can I suggest that you stop phoning her, and start writing to her? It sounds like there's a lot of wriggling going on here, and it would do no harm to pin her down to a few things. In writing.

First of all, ask her which creditors could legally petition for your BR, and why . My understanding of Protected Trust Deeds is that they make it impossible for your creditors to take legal action against you, including sequestration action.

Then ask her to set out her reasons for not petitioning for your bankruptcy, given that you have failed to meet the conditions of your trust deed. Point out that the legislation allows for the trustee to petition for your sequestration under those circumstances, and remind her that she has made this point to you on a number of occasions in the past. (You know she has threatened you with it, but keep it neutral in the letter ).

Tell her that you accept that creditors may not accept her ending the TD. But point out that a trust deed should be administered for the benefit of creditors, and that they should, therefore, be given the opportunity to say whether or not they wish the trust deed to continue - given that you cannot keep to the conditions. Did she tell you that if the creditors don't reply to her within a certain timescale (can't remember offhand what it is) then they're counted as having accepted her proposal to end the trust deed? That - IMO - is a far more likely result than them refusing to accept it, or asking for a lower contribution.

Put in the killer blow - ask her to provide you with details of what you have paid to the trust deed to date; what costs need to be covered (advert in the Edinburgh Gazette for example); HER FEES; and how much each creditor will be paid. I think you will be shocked by how little they will receive.

And then you can return to the point about the trust deed being administered for the benefit of the creditors. Point out that if they're only going to get 'x'p in the pound, with no likelihood of further money from you, what is the benefit of keeping the trust deed running any longer, depriving the creditors of their rights to take action themselves to recoup more of the debt owed to them? (I never thought I'd ever write a sentence about "depriving creditors of their rights to take action to recoup more of the debt owed to them" :eek: :eek: - but it's a fair point to make to a trustee in a trust deed who is not doing their job, by the looks of it).

You can also ask her for the contact details of her professional body (probably ICAS - Institute of Chartered Accountants of Scotland). You don't have to say why, but she should guess that it's with a view to you putting in a formal complaint further down the line...

Phew! If you're still awake , I hope that helps a bit.

deedee_3

Great post Cait. Hopefully the OP will find that very useful.

m4ndd

Thanks a lot CoolCait.:T

Brilliant advice. I do get the impression trustee is trying to run rings round me. Luckily i am a strong character and can usually hold my own. This board has been invaluable with the advice it has already given me.

I last spoke to her Wednesday and once again she hasn't ret'd my call.

I will draft a letter tomorrow covering all those points...i had been thinking they need to give me all the creditors and debt o/s for the companies attached to my TD. Even if i manage to get out it and petition for my own BR i will need all that info for the SOA form.

Got the keys to our rental house yesterday so feeling a bit wobbly as it's all really happening now. Also had a letter from First Plus saying to expect a home visit any day now. This reply has boosted me again to hold my head up and get on with it!

Amanda x

So_Sad_Angel

Hi Amanda

Good luck in your new home & keep posting ...it`ll help you keep your sanity as well!!

Angex

Miss_Poohs

OMG Coolcait - you are some chanter!!

That should ruffle a few feathers down the Trustees office - bloody fantastic.

Miss_Poohs

Meant to add - all the best to Amanda.

Jx