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Scottish Trust Deed Forum
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Topic starter
03/02/2011 9:52 am
I was made redundant Jan 2010, and it has taken a year to get back in to work. We paid credit cards etc up to a point, but then struggled. I have 4 credit cards in arrears, and in January had car repossessed (HP agreement), to which they now want over ?ú9000 to pay balance. (Not enough equity in house to realise) Including credit cards, we probably owe around ?ú25k - ?ú30k. I am just about to take up directors post (non board, but that may change in near future to board)
Would a trust deed work for us, and could you advise how salary is dealt with? i.e. Does salary get paid to Trustee instead of myself, as this may obviously jeopardise my position?
Many thanks
03/02/2011 10:15 am
Hi James and welcome to the forum.
It's impossible to say with certainty whether a trust deed would be right for you without a professional adviser working through your circumstances in a little more detail. Based upon the detail provided though it may well be an available option for you, but other options (such as DAS or a debt management plan) may also be worthy of consideration.
In terms of your questions:
The shortfall from a reposessed vehicle will be included in a trust deed in the same way as credit cards, overdrafts etc.
It is generally possible to be a Director while in a trust deed.
Your salary will be paid directly to you.
Could you let us know how much equity you believe that there is in your home?
It would also be useful to understand how your debt total is split between you (for example fairly evenly, or if one of you has considerably more debt than the other).
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
03/02/2011 10:17 am
Good Morning James,
Whilst it is difficult to determine whether a Trust Deed would be suitable for yourself given the information available, I can certainly answer your other query.
Your salary whilst in a Trust Deed is your own subject to your ability to make a contribution to your Trust Deed from disposable income. In calculting your contribution your Trustee would take in to consideration all of your essential expenditure such as Mortgage, Council Tax, Food, Transport Costs etc etc. For the avoidance of doubt, you would not pay anything directly to any of your creditors after signing a Trust Deed. Your contributions, if applicable, would be collected by your Trustee usually over 36 months and he/she would also realise any value in any of your other assets.
Whilst you obviously own your home, subject to a mortgage, the signing of a Trust Deed does not mean that your home would have to be sold. Your Trustee would simply establish the equity in your home by obtaining a valuation and redemption figure from the current mortgage provider. Once this is established then he/she would look a various ways in which this value can be paid in to your Trust Deed estate. The payments could be made by a third party on your behalf or through a remortgage, however I note your comments in that regard.
Julie is not currently posting in the Trust-Deed.co.uk forum.
