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Scottish Trust Deed Forum
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Topic starter
15/04/2015 10:28 pm
Appreciate if any one can help! My partner had a trust deed drawn up after a failed business partnership left him with debts. He paid monthly for about 1 year and then stopped, apparently he was advised if he did this they would write off the debt after 5 years????? He's obviously changed addresses since this was put in place April 2009, and was able to obtain things on credit no problem. Recently we have been updating his credit file and updated addresses and now what I assume are the the old defaulted accounts are showing. They say they are closed but defaulted! Obviously having a credit score impact, what do we do to sort this?? Will he still owe money? I don't want to contact the trustee in case I open up a can of worms but I can't have this hanging over us when we are looking at a mortgage. He's never been sequestration or anything. Very confused!!!! #128533;
16/04/2015 9:16 am
Welcome to the forum Lynds84.
Who told him these debts might simply be written off after five years? It's not that simple by any means.
If the trust deed failed, and depending upon the circumstances, your partner might well still owe this money.
If he does owe the money still there will probably be little or nothing that he can do about his credit file. Any older reporting (like default notices) will remain in his credit file for six years from the date of issue.
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16/04/2015 5:08 pm
I don't have the legislation at hand, however I'm sure I remember reading about sequestration and Trust Deed having the effect of decree and therefore extending beyond the normal 5 year period.
Time to have a dig about on the Prescription & Limitations Act.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
16/04/2015 11:11 pm
I think it just interrupts prescription - ie starts the 5-year period again.
However, even if the debts are indeed "time-barred" from going 5 years without any payment or legal action, that doesn't mean that they will disappear from a credit record.
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