Notifications
Clear all
Topic starter
07/07/2011 1:47 pm
Hi all,
I would just like to say i have been looking at this site for a few months now and the topics and advice are excellent. i will be looking at commencing a trust deed very soon and will definitely go with one of the experts on this site.
Have a question,
i have various debt which is rapidly becoming unmanageable but the key question i have is i have substantial debt on my Halifax credit card but i am worried because my current account is with the bank of scotland where all my direct debits come off every month Would I be affected with my bofs account if entering a trust deed? and also have a lloyds tsb account where my salary if paid in would that also be affected?.
07/07/2011 2:16 pm
Hi stressedout.
When your trust deed becomes protected your creditors cant chase you for debt
Why don't you open another account like the coop saver before setting up the trust deed.it is a good alternative and is ok tohave your salary paid in., good luck
07/07/2011 2:17 pm
Hi stressedout and welcome.
Most people starting a trust deed (and other alternatives) transfer their banking arrangements to a new bank before they go ahead.
The reason is that most people owe money to the same institution (that their current account is with) which will be included in the arrangement, and retaining a current account with that institution is likely to lead to all sorts of disruption later on.
I've just done a quick online check that suggests Bank of Scotland and Halifax are on the same banking licence which means you'll not want to bank with Bank of Scotland any more.
Do you owe Lloyds TSB any money?
Transferring direct debits and standing orders shouldn't be too hard and should be something your banks can handle for you.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
07/07/2011 2:24 pm
Thanks TDA,
I don't owe any money to Lloyds Tsb so i am hoping that will be ok, i just wondered as i seen somewhere bofs,halifax etc is all part of the lloyds banking group. not sure banks are getting bigger all the time, i am thinking of opening a new account with RBS- basic account just in case ,just trying to clear stuff up before the inevitable happens.
many thanks for the reply.
07/07/2011 2:33 pm
It is all very complicated but from the resource I found:
Halifax and Bank of Scotland operate from the same banking licence.
Lloyds operate from a different banking licence.
That should mean no issues for you assuming the information is correct as I believe it to be.
However, you should still check whether your Lloyds account is an account that will allow you to continue with it after a trust deed is signed (if they were to find out). If it isn't, there will always be the chance that it could get closed down if Lloyds became aware.
The basic account at RBS could be a good idea, just check the criteria for acceptance/continuance of the account includes being in a trust deed.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
07/07/2011 5:35 pm
Before signing my Trust Deed, I switched my Clydesdale Account to HBOS. I was slightly economic with the truth when opening my new account, as when asked if I had ever been Bankrupt or in a Trust Deed I answered No... At this point I had still not officially met my trustee or signed any paperwork so at that very minute when asked I was neither.....
HBOS changed all my direct debits and arranged for my salary to be paid into my new account.....
Over a year later am still with HBOS and not had any issues with them. So therefore my advice is switch your accounts ASAP before signing a Trust deed.....
