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Scottish Trust Deed Forum
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Topic starter
08/05/2013 10:20 pm
Hi there
Signed PTD in July 2009 and split with husband in Oct 2009. Due to change in circumstances have only paid 3 months contributions. Still in Trust Deed because they are incessantly making claims for PPI on my behalf. Due to change in personal circumstances, I had to buy a car in nov 2009 and called trustee who advised was ok to get credit if not more than 3K. Did this and car fell apart 3 years into credit agreement and I had to voluntarily surrender home so now have to rent a property. This all means that I have been unable to keep up payments on the car which was reposessed.
I was taken to small claims court in April where I accepted liability but stated I was not in a position to make any payment (because if I was, I would be paying a contribution to trustee). The Sherriff granted decree and now I have a charge for payment for a debt of £2700. I cannot add this to trust deed as under 3K and taken out after PTD signed and I cannot enter sequestration if in a trust deed. I have Sheriff officers turning up at my door randomly and I am caught in a catch 22 here.
I am absolutely sick of this situation. I am writing a letter of complaint to my trustee in the first instance asking what on earth is going on and that I wish to be sequestrated. Thereafter I shall seek advice from the financial ombudsman. I also want to complain that I gave up my house as the trustee's valuation made out that there was 50K equity in it and actually it sold for under the value of the remaining mortgage. My son has autism and this upheaval has been horrendous for us all. I am a single parent and work hard part time and I am getting nowhere in a system designed to help clear debt and start afresh. How do I get off this never ending treadmill? Any ideas greatly appreciated.
*rant over*
09/05/2013 8:27 am
It appears that the trust deed will fail when either sheriff officers serve a charge for payment and then encorce diligence via perhaps an earnings arrestment. Should sequestration be awarded this would take precidence over the TD. If the trustee in the TD resigns then all the TD debts may fall in to the sequestration and be dealt with there. If they discharge you then it would only be post TD liabilities falling in to the sequestration.
Rob is not currently posting in the Trust-Deed.co.uk forum.
09/05/2013 11:02 am
I think you are doing the right thing in writing to your trustee - hopefully this will move things along as it does seem a very long time for them to be pursuing PPI claims
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
Topic starter
02/07/2013 4:13 pm
Hi there
Please see above re my post in May. I did complain to trustee stating all points and that I am now subject to an earnings arrestment (£260 a month!!). This has put both myself and my family in a horrific situation and I am begging/borrowing from everyone around me to survive. The TD company complaints lady wrote back with a very vague letter answering few of the questions I asked, the main one being when and how can I be sequestrated. I have now written to both the AiB and the financial ombudsman for help in dealing with my complaint. This TD was supposed to be a resolution and it is a living nightmare just now. The trustee is making no move to sequestrate me or hand me back to my creditors and it is crippling me. Is this right? How long can this go on? Need help advice fast :-((.
02/07/2013 6:06 pm
Generally an earnings arrestment will fail a TD if the creditor does not agree to cease it, as this will likely remove all net free income used to contribute to the TD. It also creates an unfair preference to the other creditors. What is the current position? Are you still paying a contribution? Have the deductions from the earnings arrestment commenced? It should be quite straightforward to work out whether the TD will continue or whether the trustee has to petition for your sequestration to cut down the earnings arrestment
Rob is not currently posting in the Trust-Deed.co.uk forum.
Topic starter
02/07/2013 7:13 pm
Hi
Thanks for replying. I have not made a contribution to my Trust Deed since Oct 2009 and my Trustee has been aware since then that I will be unlikely to make a contribution anytime soon. The deductions from my salary commenced at the end of June. All the advice I have had has suggested that the process of failing trust deed/sequestration should be straightforward, however, the Trustee/Complaints Dept of the company in question has completely ignored my questions regarding this. This is why I have also written to the AiB and the Financial Ombudsman in the hope of a resolution to this terrible situation. Do you think they will have any power to rectify things? Thanks for reading.
02/07/2013 7:24 pm
Hi pinkpig
I'm not sure the Financial Ombudsman will have any authority. The normal process would be the AIB and trustees governing body.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
02/07/2013 7:52 pm
Hi
Do you know the address of the Trustees Governing Body at all?
Thanks.
03/07/2013 6:16 am
Hi pinkpig
It would normally be ICAS, ICAEW or the IPA. If you have any letters from the trustee, its normally at the bottom.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
03/07/2013 11:35 am
Hi pinkpig.
Just to further explain, insolvency practitioners may be a member of one of several professional regulatory bodies.
You'll need to establish which yours is a member of as Mark suggests.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
05/07/2013 4:13 pm
Hi
Well!! Got a call from Trust Deed company this morning to say that they will be discharging me in the next two weeks! They are not handing me back to my creditors which is a massive relief. Finally, this horrific journey seems like it now has an end point. Seems like the AiB had some clout in this situation. So thankful for all the replies 🙂
05/07/2013 4:47 pm
Great news to hear on a Friday afternoon pinkpig.
I hope you enjoy your weekend.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
06/07/2013 9:53 am
Hi pinkpig
In my usual belts & braces mode, you should get this confirmed in writing as I'm not sure there is a process to do this. The trustee will need to advise creditors that you have completed the trust deed or you have not.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
16/07/2013 12:03 am
Hi
I received a signed Form 5 today from my Trustee. What do I do next? Thanks for replies.
16/07/2013 10:30 am
Hello pinkpig.
It must be good to get it in writing?
I'm not quite sure how to answer your "what do I do next" question. Is there something in particular on your mind in this respect?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
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