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Scottish Trust Deed Forum
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Topic starter
11/08/2011 2:12 pm
hi there i am looking for some advice on what is going to happen to me. I entered into a trust deed last feb and everything was going fine then a few months into it my partner got a promotion at work and was earning double his wage we moved home to a private let which at the time we could afford. Then the company my partner was working for went bankrupt and we were bound to a 1 year lease with my wage the only source of income which barely paid the rent let aloan any bills. I defaulted on 3 payments towards my trust deed when i informed my trust deed i got quite an angry response and was told i was extremely silly for moving and that my trust deed would continue as long as i made a payment. Even though i said i couldnt afford it i said i would try and make the payments i have not been able to make any more payments and i am too embarrased and somewhat scared to contact my trust deed again. what should i do just swait for a letter or contact them. with my circumstances would i be better off bankrupt. I entered my trust deed with 11,000 of debt i dont own a home or car and have no savings or even furniture i had to sell these to feed us and now rent furniture from a shop.
charlene mclaughlin
11/08/2011 2:25 pm
Hi CMCL8
Did you contact your TD company when you had the rise in income?
11/08/2011 2:34 pm
Welcome to the forum cmcl8.
I'm sorry to hear that things have taken a turn for the worse.
The experts here have reported here (on threads where similar issues about changing circumstances have been raised) that if circumstances take a turn for the worse for reasons that are out of your control that flexibility and understanding in connection to the trust deed should be applied.
The bankruptcy of your partner's employer was clearly out of your control, though I suppose a Trustee might consider that the additional expense of a more expensive home was within your control.
Tinsoldier asks an interesting and relevant question and it would be useful to know the answer to that.
I guess the key point however is that you need to keep a roof over your head and food on the table. They'll be things that you'll need to prioritise if there is not enough money to pay everything. You simply cannot pay over money that you do not have so I cannot see any reason for you to be fearful about contacting your trust deed provider to have a frank conversation about where things will go from here.
Bankruptcy may have become a more appropriate option, but that isn't viable unless the trust deed has ended. That's another reason to start communicating with your Trustee.
Do you think that there is any likelihood of circumstances improving again soon?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
11/08/2011 3:02 pm
Sorry i should have expanded on my answer - at work and quite busy!
The reason i'm asking is if you were honest about the rise in income (which may have caused your payment to rise) then i'm sure your TD company will be understanding and flexible should you explain your situation now.
I had cause to contact them after i went on a temporary 4 day week and they couldn't have been more helpful and my TD was brought to satisfactory conclusion.
Let us know how you get on please
Topic starter
11/08/2011 3:20 pm
hi there i did inform them of my partners increase but was told that it has no relevance to my trust deed as i am solely on the deed and only my wage tax credits etc would be considered. My partner has just started a new job with a fraction of his former wage. He took out a lot of payday loans provident etc that now has to be paid off he is looking to declare himself bankrupt to.
charlene mclaughlin
Topic starter
11/08/2011 3:22 pm
quote:
Originally posted by cmcl8
hi there i did inform them of my partners increase but was told that it has no relevance to my trust deed as i am solely on the deed and only my wage tax credits etc would be considered. My partner has just started a new job with a fraction of his former wage. He took out a lot of payday loans provident etc that now has to be paid off he is looking to declare himself bankrupt to.
charlene mclaughlin
11/08/2011 3:34 pm
I find it strange they didn't take your partners income into account - i am correct in thinking you stayed together at the time? Income/expenditure is based on household income (or at least it was for me)
Topic starter
11/08/2011 3:43 pm
Yes we lived together at the time. My partner was with me at the time i signed and they also asked him if he would like to join a trust deed but im sure they didnt take any thing down regarding his salary. I am going to call my trust deed to find out what is going on the more posts i read on here the more i feel the need to find out not only where i stand at the moment but as you say why my partners income was not included if he lived with me etc
charlene mclaughlin
11/08/2011 3:45 pm
You should speak to your trustee again cmcl8. Tell them you cannot afford the payments any longer. Either they will accept this and carry on with the trust deed in the hope that this improves again in due course, or they will terminate the trust deed and you can apply for bankruptcy instead, or they will petition the court that you should be made bankrupt.
Whatever happens, if you have no assets then you have nothing to lose (as long as your job is not affected by a bankruptcy?)
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
Topic starter
11/08/2011 3:48 pm
Hi there thank you for your response what exactly does bankruptcy entail??
quote:
Originally posted by Kevin Mapstone
You should speak to your trustee again cmcl8. Tell them you cannot afford the payments any longer. Either they will accept this and carry on with the trust deed in the hope that this improves again in due course, or they will terminate the trust deed and you can apply for bankruptcy instead, or they will petition the court that you should be made bankrupt.
Whatever happens, if you have no assets then you have nothing to lose (as long as your job is not affected by a bankruptcy?)
charlene mclaughlin
12/08/2011 9:27 am
Probably easiest to click on the tab at the side of the page, there's lots of good info there. Any specific queries just ask.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
12/08/2011 10:27 am
As Kevin mentions, the pages worth reading cmcl8 will be:
Bankruptcy: http://www.trust-deed.co.uk/bankruptcy.php
LILA Sequestration: http://www.trust-deed.co.uk/lilasequestration.php
Certificate for Sequestration: http://www.trust-deed.co.uk/certificateforsequestration.php
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