Hi afc1903.

If you owe that bank money you'll need to open a new current account with a bank you owe no money to before the trust deed begins.

This will give you a clean start and protect you from the bank seizing money that you need for household expenditure.

Most banks offer a basic account that they make available to people that sign trust deeds.

This is the problem we had and the solution is in the timing. If you are to go for a trust deed you must 1st open an account with someone who isnt owed money from you. Then get your payroll/wages/benefits transferred to your new account while also setting up direct debits for rent/mortgage/council tax etc (things you will continue to pay). Only then is it safe to cancel all other direct debits and inform your old bank whats happening.

Our timing was out and our £700 overdraft that was to be included in the trust deed could not be as lloyds tsb cancelled the overdraft after we had been paid and would only let us draw our funds down to zero.

Paul

Hi Keith,

As plasticdaft has said it all comes down to timing and a good advisor can manage and assist you with this.

You want to open a new account, transfer your wages and any bills over to the new account and leave the old one. Providing you make sure you wages go into your new account you shouldn't be left short. It should be fairly straight forward to organise.

Thanks guys
that's what I thought, I also fund the page on this site about it, so it is really hitting home now.