Notifications
Clear all
Scottish Trust Deed Forum
5
Posts
5
Users
0
Reactions
1,838
Views
Topic starter
14/01/2015 6:21 pm
Long story but the reason I ended up in a trust deed is down to a dispute with a former fellow director who left me with a load of debt. A dispute lasting for the best part of three years followed during which I encountered some fairly hefty legal bills. With hindsight these fees were a complete waste of money as I am sure anyone who has been in a similar situation will agree that the only people that do well out of these type of disputes are the lawyers.
The law firm I dealt with were aware that my only option was a trust deed and dealt with my resignation as a director to enable me to enter into my TD.
I still have £2k outstanding to the lawyers which they have now added charges to take it up to £2.5k. The invoices are dated before I signed my TD. They are asking me to set up a payment plan with them but do I not have to include them in my TD? My understanding is that when in a TD you are not allowed to have preferential creditors. I had hoped they would cut me some slack as they have probably had about 5 times what is still owed and they got me absolutely nowhere but they are threatening court action and adding on interest.
Just wondering if anyone knows the best thing to do here
14/01/2015 6:29 pm
I,m not a professional but when I was sequestrated (I had a few smaller debts) I was told that I was not allowed to pay anyone, I think if you start to pay 1 then the rest could demand payment too... leaving you in a whole heap of trouble. be careful
S Coyle
14/01/2015 6:29 pm
Hi jt222.
I can see no obvious reason why these legal bills would be treated any differently to your other creditors.
You need to notify your trustee. They'll tell you whether the debts will effectively be included in the trust deed (or whether you should make a payment arrangement if not).
If your trustee felt that they should be included they'll invite the lawyers to submit a claim which is likely to result in them getting some level of dividend on what is owed to them in time.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
14/01/2015 11:10 pm
Did your Trust deed become protected, jt222? If so then the legal fees are included and the firm involved must make a claim and desist from any further demands for payment.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
15/01/2015 10:11 am
Hi jt222
If the debts were incurred before the trust deed then they will be an ordinary claim.
You should also question why they asked you to resign as a Director before signing.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
