Hello Pam.

In general I'd advise people to have their new banking, payroll and direct debit arrangements in place before actually signing the trust deed.

On your question about a bank current account and a loan with the same bank, we have often seen the bank itself reinstate a "cancelled" direct debit in such circumstances.

My trustee did all the necessary approaches to the banks/credit card companies to whom I owed money and DDs/SOs just fell by the wayside. I felt that I should let things go into default rather than look as if it was all premediated and start to cancel things. I have no idea whether it had any influence on the bank but the guilt trip was still there espescially after 35 years with the one bank. They had tried to work things out for me before that point (yes, with another loan, over 7 years!) but that made me realise that I was NEVER going to get rid of the ever mounting debt - sound familiar!

To their credit my bank did steer me gently towards a PTD since they realised that I was "man overboard" - time to wipe the slate clean, bite the bullet for 3 years, start again without a bill or credit card to my name. And I am in my last month of those 3 years.

If you put this off for another month, you will be on this forum around 25 November asking the same question.... like me, you probably think that you have missed something or that the lottery will come up....the PTD was my salvation but yes it took me some mental pain to sign on the dotted line. Sounds like you are experiencing that same degree of doubt/guilt/angst!

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Originally posted by Trust Deed Assistant

Hello Pam.

In general I'd advise people to have their new banking, payroll and direct debit arrangements in place before actually signing the trust deed.

On your question about a bank current account and a loan with the same bank, we have often seen the bank itself reinstate a "cancelled" direct debit in such circumstances.

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TDA - that's exactly how I feel. I would sleep easier knowing that everything was in place for sign up day. I believe I will take your advice on that.

Hi Pam

I am so pleased the valuation came in low, and you do not have a problem with the equity....so long as you get it in writing. Make sure they go over the documents with you before signing. If you are unsure you can delay, but if you know this is what you want then that's good. I don't think anyone is trying to put you off a Trust Deed, we just want to make sure you get it right before signing, becuase its too late after. If you have made sure you have dealt with everything, and have it all in writing, then I am sure you will ave no regrets.

TDA is correct in saying you should make sure your new banking arrangements are all set up first- better safe than sorry!

I think if you are sure you are going down this route, you would be as well cancelling the DD's now - it will make no difference to whether your TD becomes protected or not.
Good luck.

I've had a quiet day today - I don't quite know what to do with myself now that I'm not creating and tweaking budgets and I&E spreadsheets! In limbo at the moment until my PTD paperwork comes through and we can spend some time poring over the details which should be by Friday. We're still swithering over the PTD v DAS.

Just a very quick question - do you think £600 a month is a fair payment to make into a Trust Deed or indeed a Debt Arrangement Scheme if that's how we choose to go? I know this can be a hard question to answer because of course it all depends on the level of debt and I&E figures. I only ask because I've seen payments mentioned on this forum of around £200-£300, sometimes even less.

If that's all some people can afford to pay than that's fair and right but I'm kind of hoping that my creditors will see £600 and think, oooh, that'll do nicely!

Hi pammy1969

Its impossible to answer as you would need an income and expenditure and other info.

I am a wee bit nervous as there appears to have been no meeting and I'm not sure if the position with the property has been absolutely clarified ie no valuation will take place in 3 years.

Please ensure all matters, especially the equity position, is fully confirmed by letter before doing anything.

Mark

quote:

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Originally posted by Mark McFadyen

Hi pammy1969

Its impossible to answer as you would need an income and expenditure and other info.

I am a wee bit nervous as there appears to have been no meeting and I'm not sure if the position with the property has been absolutely clarified ie no valuation will take place in 3 years.

Please ensure all matters, especially the equity position, is fully confirmed by letter before doing anything.

Mark

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Thanks Mark

The paperwork is being sent to me tomorrow and we'll get it recorded delivery on Friday.

Dont worry - we'll spend plenty of time this weekend going over it and make sure we understand everything in it and not sign until we're 100% sure. If we have any doubts at all, we'll request a face to face. And, I'll make sure they come here (we live in the North East and our trustee is in Glasgow - not a million miles away but still...).

It's been a few days since I've been on and I can now report that we signed our PTDs this weekend! So, there's no going back now but we're feeling good. A bit nervous thinking about the wait for getting the Trust Deed protected but our IP is confident that all will be well.

We're now in the process of moving my OH's banking over to mine (making it a joint account). Cancelling Direct Debits etc. The first one was the hardest but a few clicks later, done! I still feel guilty though and that might not go away (but that's me all over).

We do have a query that I hope someone on here can answer. OH's bank loan payment is due in a few days - it's with his own bank so we can't cancel the DD. We've transferred all the money out leaving only his overdraft. This means though that the bank can take their payment as normal. There's enough for two payments actually. He has the option of cancelling his overdraft. Should he do this or just leave his account with a nil balance but with the overdraft in place?

Hi pammy1969.

I suppose it would be a little "neater" if the overdraft could be cancelled and the bank did not reinstate it or simply push him into an unauthorised overdraft.

I doubt that this matters much in terms of the trust deed though. All that will happen will be that the loan balance will reduce while an overdraft balance will be created for a similar amount. The total debt to the bank itself will change little.

Trust Deed Assistant is right, pammy1969 - it'll sort itself out in the wash so to speak, so need to worry about it.