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Scottish Trust Deed Forum
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Topic starter
14/11/2013 4:22 pm
As people may be aware, the minimum timescale for a Trust Deed is 3 years at the moment and there has been a lot of discussion regarding this on the forum recently.
On the 28th of November 2013 the Trust Deed regulations change and the minimum timescale then increases to a 4 year period.
I guess I'm really aiming this thread at the people who may be thinking about asking for debt advice but haven't quite managed to work up to doing this yet.
I've spoken with a couple of clients recently who have said that the change in the timescale from 3 years to 4 years is what really prompted them to ask for some advice and help.
If you do ask for advice and help and a Trust Deed is a suitable option but you don't speak with someone until December then you will be looking at a minimum of 4 years.
Sometimes there is an event or something happens that prompts a client to ask for help, it could be a threatening letter or phone call, reaching the maximum limit on a credit card and being refused shopping at the till or simply just deciding enough is enough and that they need to ask for help and advice.
This is similar to when the fee for applying for your own Sequestration was increased from £100 to £200. There was a spike and a rush to get applications in before the cost doubled. I don't think there will be the same rush and spike but people could end up asking for advice too late and having to pay a Trust Deed for an extra 12 months due to a couple of days.
It's just something to think about for all the people who are looking into Trust Deed's at the moment on the forum.
David is not currently posting in the Trust-Deed.co.uk forum
14/11/2013 5:21 pm
Just to say... bankruptcy payments (where affordable) will still be three years after 28th November. Most people will not find a huge difference between the two so there isn't necessarily a rush.
However if you have a particular inclination for a reason that's important to you towards a trust deed rather than bankruptcy the clock is ticking before a four year arrangement becomes the minimum.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
14/11/2013 7:06 pm
Ours was over 42 months anyway so its not like the goalposts have moved too far for everyone.
But some people may be nudged into action by the thought of 12 months extra payments. I wonder how many sharks are using the change as a selling point?
Paul
Trust deed completed Jan 2012,Trustee discharge Nov 2012.
A new dawn.
14/11/2013 8:01 pm
I haven't really seen that Paul but I suppose it might be happening. Mark already wrote that he felt a bit like a double-glazing salesman mentioning it! Damned if you do and damned if you don't I suppose.
I guess for a lot of people the imminent change probably is a selling point for quick action if they're minded to take this route at some point in the future.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
