Hi k13vnr1981

I don't think there is a definitive answer to this. They would need to take a view if this was transferred for the purposes of avoiding payment via the trust deed or not and if they did, what are their option on this.

In my experience I have never made a proposal in similar circumstances which has been rejected as in my opinion, their options are fairly limited. I think best policy in any proposal is to be clear & up front, although they will have access to the account details etc. in summary, I'd be surprised if there was an issue.

Mark

Hi k13vnr1981,

The creditors will receive the proposal and what they generally consider is the level of return at the end of the Trust Deed, the income and expenditure and also the Trustees fees. Outwith this, the creditor could consider past account transaction history and when the account was opened etc. In my experience though creditors considering past transactions is unusual.

I had a case recently where one of my clients took out a large consolidation loan with a high street bank 9 months ago. I told the client that because of this there could be an increased risk of that particular creditor rejecting the Trust Deed proposal. The creditor didn't and the Trust Deed was successfully accepted and became protected.

I think it's going to be a case of making the proposal to creditors and waiting to see what happens. As Mark said I don't think there is a definitive answer regarding this.