Sometimes takes a while for your Bank to find out your in a TD, I was with The Clydesdale Bank and they only wrote out to me about 6 weeks after my TD became protected advising that they were closing my account off.......

I've been in my TD for 7 months now! My worry is that the company I set my TD up with hasn't taken my overdraft into account and obviously I don't have the money to oay off my overdraft!

Hi blondie10.

When a trust deed proposal is sent to a bank they actually tend to use a "voting agent" to review it and decide whether to accept or object to it.

It seems that sometimes the communication between voting agents and the banks they represent can be a little slow. I think that's part of the reason people sometimes report here that they continue to get phone calls from banks even after their trust deed is protected.

I don't think that your bank would ask you to close the account, in fact I dont think banks will generally allow you to close an account if there is a balance owing. As Porcupine says though, I think it's a decision that they themselves are likely to take at some point.

Your overdraft is automatically included blondie10 so long as it existed on the day that you signed your trust deed.

I'd suggest calling your trust deed firm to confirm that they have it listed amongst their record of your creditors. If it isn't they should be able to add it easily enough.

Thanks TDA shall do that on Mondat

Monday even!!

Thanks TDA shall do that on Mondat

Well, took TDA's advice. Called my TDA today - and guess what - it wasn't added in at the start of my trust deed and because I never spotted that it wasn't in the summary of my debts and have been using it as I thought it had - I am now liable for the overdraft amount, it can't be added onto my TD. I am very angry at myself and obviously the fact I gave all my paperwork to my advisor. Hey ho - yet another debt to add to my life!

That seems a bit strange blondie10, I'd have assumed it should be added to your other creditors in the trust deed.

Perhaps Mark, Kevin or Shona could confirm...

This is a bit of a tricky one. If money has been getting credited to the account and the overdraft was subsequently used again after the date of the trust deed then technically it could be classed as a new post-trust deed debt and would indeed need to be repaid separately I'm afraid. Only debts outstanding at the time of the signing of the trust deed can be included.

Hi Kevin.

So the key point is that money being paid into the account may have cleared the debt after the trust deed started, in which case any current balance could be considered to be a debt that arose after the date of signing the trust deed?

Spot on.

Hi all

To simplify matters. The balance as at the date the trust deed was signed would be a claim. Any debt incurred after would be your responsibility.

Did you continue to use the account after you signed the Trust Deed? Also, for the account to be included, you would require to advise that they are a creditor. If you do not, then the only way the bank would find out about the Trust Deed is via the Edinburgh Gazette advert.

Mark

I continued to use the account after I signed the trust deed as I wasn't aware that I needed to get a new account. Obviously I have used the overdraft continuously since signing my trust deed. My bank have no knowledge of me entering a trust deed as I assumed that this was included in my debts as I provided all the paperwork to my Advisor which clearly shows that the my current account had a £1,000 overdraft. Obviously I didn't read my statement properly properly as I had a loan with the Bank too for my car - so I must have thought it was included in that. Only since joining this forum and reading more about it I started to worry about the overdraft. I am now changing banks and called them to advise about this, which involved a long yes I am in a trust deed - oh no you aren't (pantomine season after all) conversation which lead me to write the post and call my TDA which is when I got the lovely news! Top tip of the day - double, no triple check everything!