Update - Signing a Trust Deed

debtCollector_3

Hi

Not sure if anyone will remember my first post a few months ago (November I think), Anyway I was in a right mess and totally freaking out about my situation :eek:

I will be signing a Trust Deed on Friday 16th, Trust Deed explained below for anyone that doesn't know what a Trust Deed is, I didn't 2 months ago.

After signing I will pay £100 a month for 3 years then at the end of the 3 years I will have to release the equity on my property and pay that to deed, the equity is fixed at the start of the deed and will not change over the course of the deed. Then I'll be debt free....... Fingers crossed and all going to plan

Anyway, I'm a bit nervous about it as I'm doing this on my own, no one in my family knows about it but I don't see any other way out.

I've also got a secured loan that I will continue to pay and car finance, so every week I have £85 to live on (food, etc.) after all the bills are paid.

If I hadn't found this forum then I'd still be in a mess, so BIG THANKS to everyone for all the advice!

Also, I've learned so many ways to save and earn money, over 3 months I've got £206 cash back off quidco.com ........ mostly from changing insurances and going via quidco.

DC

A Trust Deed is a process that enables an individual who is struggling with unmanageable debt the opportunity to make a proposal to their creditors in order to clear their debt. All creditors are circulated with the proposals being made and providing no creditors who have claims totalling greater than 1/3 of the total debts, vote to reject the proposals then the Trust Deed becomes protected and therefore legally binding on all of the creditors that were circulated with it.

When a Trust Deed is accepted by creditors it becomes 'protected' and creditors have no alternative but to stop any further interest from accruing on their outstanding debts. Providing the debtor keeps to the terms of their Trust Deed then their debts will be considered settled in full when it has finished.

beanielou

Hope that it all works out well for you & good that the amount you have to pay in equity is fixed at beginning-I thought it was at the end dependant on house price rises.

clarab_3

Well done DC Im really chuffed for you!

Can I ask one quetion? as the equity is fixed at the start, what happens if house prices drop over 3 years?

Ive been lucky enough to avoid a deed myself but Im finding a lot of friends coming to me for advice on debt these days and I know a couple are considering their options.

I_was_a_fool

Hope that is a weight off your shoulders :-)

Question: Doesnt "release the equity" mean taking out a loan? Or selling the property?

debtCollector_3

beanielou wrote:

Hope that it all works out well for you & good that the amount you have to pay in equity is fixed at beginning-I thought it was at the end dependant on house price rises.

This is the advice I was given…. If the property has risen in value by the end of the three years, this increase will not be taken into consideration. You will sign documentation at the meeting that confirms the amount of equity that will be required.

clarab wrote:

Well done DC Im really chuffed for you!

Can I ask one quetion? as the equity is fixed at the start, what happens if house prices drop over 3 years?

Ive been lucky enough to avoid a deed myself but Im finding a lot of friends coming to me for advice on debt these days and I know a couple are considering their options.

I’ve been asking a lot of question about deed, however, haven’t asked your question, I assume that the equity remains fixed no matter what the value of the poperty is at the end of the 3 years.

Really don’t think there was any other option but a Trust Deed for me as I didn’t want to sell my home, I’ve got nearly 47K debt, just worked out that with the Trust Deed I’ll pay back just under 30k.

You should have a look here http://www.debtquestions.co.uk/debt_forum/ there are a lot of Q&A about Trust Deeds, just look under Scottish Debt

I_was_a_fool wrote:

Hope that is a weight off your shoulders :-)

Question: Doesnt "release the equity" mean taking out a loan? Or selling the property?

If I can’t raise the equity on my home by remortgaging then I’d have to source the cash elsewhere…….. worse case sell the property.

This is a weight of my shoulders……..2 weeks since pay day and I still have money in the bank, that’s a first for many years……. I’ve taken Martin's advice from his book and set myself a weekly allowance, I take the allowance out the bank on a Monday then don’t allow myself to go back to the bank until the following Monday so if I want cash for the weekend then I’ve really got to be careful with cash

Thanks for you replies

honey_gem

Hi DebtCollector,

I have been in my Trust Deed for a year now and have gained my life back money is tight BUT you dont have to worry about creditor letters and phone calls threatening legal action. It does take a month or so for the calls and letters to finally stop but just send all correspondance onto your IP and (s)he will deal with it.

Like yourself I didn't tell my family when I signed my Trust Deed (I signed in March 2006) The light flickered on for me in October 2005 when I realised I could no longer keep up with payments and was struggling to live on less that £50 a month thats when I set the ball rolling I didn't see any other way out either.

I only told my family in August AFTER I had my full lightbulb moment. The weight that was lifted when I told my family was huge and has also helped me to sort myself out fully. I am much happier now and have, with the help of this site learnt to budget properly and live within my means! Its been hard but for me it was the wake up call that I needed to sort my life out.

It might help to tell your family your situation so they can help you as well.

As it happens I signed my Trust Deed on 10th Feb 2006.

Good luck on Friday when you sign on the dotted line.

Pamela

debtCollector_3

Thanks Pamela

Did you TD get protected? Family know that I'm always skint they just don't know the extent of my debt, will sign the deed on Friday and then see how I manage, I'd rather keep it to myself, my mum has enough on her plate without having to worry abou me....

I'll let you know how it goes on friday?

Thanks
dC

benood

Well done DC I remember reading your first post last year, you seem so much more in control now. Best of luck.

hopingforahouse

Have a trust deed as well - a year and a half now. Absolute god send. AM NEVER going to end up in that situation again. Can't wait till its clear though

Imagine - in another 4.5 years my credit record might make it above the 'very poo' level, where its been since about third year at Uni.

Its scary stuff, but when you stop getting 7/8 letters a day, and constant phone calls, you'll see the difference.

I would suggest maybe telling one person you really really trust, and no one else if you don't want to - just so you have someone to talk to about it.

Also - any overtime or part time jobs you take will never be included in your trust deed, so you can get some extra cash if you need anything thats not in your budget.

GOOD LUCK!!!!! :T :T :T :T :T :T

honey_gem

debtCollector wrote:

Thanks Pamela

Did you TD get protected? Family know that I'm always skint they just don't know the extent of my debt, will sign the deed on Friday and then see how I manage, I'd rather keep it to myself, my mum has enough on her plate without having to worry abou me....

I'll let you know how it goes on friday?

Thanks
dC

Mine got protected no problem, Hope all went well on friday

deltatwo

Hi DebtCollector,

Can you tell me if you used MoneyAdvice Scotland to arrange TD or did you use one of the Specialist Companies that you pay a fee for?

Also, what documentation did you have to produce?

Thanks