Notifications
Clear all
Scottish Trust Deed Forum
3
Posts
3
Users
0
Reactions
997
Views
Topic starter
09/08/2020 10:26 pm
This was a question for a friend as I was in a trust deed years ago. She asked that she has available credit on a credit card that will be included in the trust deed. She asked could she just withdraw the available funds just before she signs the trust deed or would there be reprisals in doing so?
10/08/2020 8:57 am
Gbmraith
Creditors have the right to object to the trust deed from achieving protected status. Your friend withdrawing available funds from her credit card could be seen as a deliberate attempt to profit from the process and the Insolvency Practitioner may refuse to act.
Hope this helps.
p
Recommended Partner & Trust Deed Expert - Ask me for help setting up a Scottish Trust Deed
10/08/2020 9:50 am
Hi gbmraith94.
There's not usually much of an issue with creditors if recent credit has been used just to get by from week to week. Spending using credit for food, petrol, or utility bills is unlikely to cause issues.
Withdrawing all available cash just before entering a trust deed could be seen as pretty cynical by a creditor and by a trustee, and could accordingly raise questions about honesty and integrity.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
