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Scottish Trust Deed Forum
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Topic starter
10/01/2014 6:15 pm
Hi,
Two weeks ago I saw a financial advisor
As I had amassed debts of 20k
I have NO assets
But
I pay into a work saving scheme which is locked in for 5 years
Then I received the equity in the form of shares
The financial advisor advised me to get a TD and referend me to a IP
She also ADVISED ME NOT TO MENTION THE SHARES
As they were locked in till the end of this year. And I couldn't touch them.
I SIGNED A TRUST DEED
I haven't declared savings plan/ share scheme to my ip.
They are worth about 9k now, but will be worth 20k when they mature.
I am only finding out now, that
The advice from the fin advisor was horrendously wrong.
If I had told my trustee about the saving plan/shares
The trustee might have been able to suggest a full and final offer!!
When do I declare the shares to the trustee?
When they reach maturity and are transferred into my name
Or right now.
Will any or all of the share value be used to pay of my 20 k debt.
And if it pays off most of the debt
Will I still have to pay the agreed monthly sum for the next 4 years as well?
10/01/2014 7:29 pm
Welcome to the forum Dally.
I'm afraid it sounds like you've been very poorly advised by your financial adviser.
You should advise your trustee immediately. They'll investigate whether the asset can be utilised to help repay your creditors during the course of your trust deed.
The most you'll have to pay in total will be the sum of:
1: Your debts.
2: Interest on the debts.
3: The trust deed fees and costs.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
11/01/2014 1:20 pm
I note you say interest on the debt.
It was my understanding that interest was frozen once the TD became protected?
Is this correct?
What us interested calculated on?
11/01/2014 3:12 pm
Hi Dally.
That would often be the case, but where circumstances change so that you can fully repay the creditors plus interest they remain entitled to receive it.
It might be statutory interest (8%) or possibly the original contractual rate.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
