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Scottish Trust Deed Forum
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Topic starter
14/08/2011 12:56 pm
Hi all
I would like to say firstly that this forum facility for Trust Deeds is a great help. It is so hard to read and get advice on the internet specifically for Trust Deeds.
I have read through a good number of threads on the forums and found that a couple do help me a little however, I feel I am in a pretty unique situation.
Our joint Trust Deed started in July 2005 with one of the companies listed in the 'Firms' section of this website. We met our trustee and handed over a listing of all our debts, a full statement of affairs at the time. The trust deed was approved and we were asked to pay £500 to secure the equity in our house. We didnt pay this as it was impossible to afford.
The Trust Deed became protected within a month or two of the papers being signed with none of the creditors complaining. Our monthly payments were set at £160.
This is now where things started to go wrong. We assumed that the trustee would have arranged to setup a direct debit to take the money monthly and it would sit quietly for the next 36months. Wrongly we assumed that after 3 years we would walk away wise from this harsh lesson and be able to live again.
It turns out they have no facility for this and I was to setup a standing order to their bank account. This was setup 8 months later in Feb 2006. Since then we haven't been paying it very well, perhaps 6-7 times a year with varying amounts less than £160 due to money restraints (eg xmas, holidays - UK caravan ones, family emergencies).
The funny thing is, I feel like we have been abandoned now. They dont seem to care if we skip, pay less. I have also not had a review in the 6 years that this TD has been running. We now have 2 kids and earn 2x as much money.
2 years ago we got a letter addressing the equity issue. We are told the TD would need 9k from the equity to call it quits. We put the house on the market and have had 1 brief viewing. I can't get it sold nor can I get a remortgage.
I am now in limbo and pretty much on my own. Our House, cars, motorcycle's are now 5 years on from the start of this and need a fair bit of work done/replacing. I can't get any kind of credit to assist with the work (Bathroom has dampness issues, motorcycle engine has died, car needs serviced etc). As time goes on the car will die and leave us with no method of transport.
In the past we have borrowed from parents etc for disasters but its fast becoming not an option as they get older/retire.
Where do I go from here? I'm scared that if I approach the trustee he will whack the payments up and make our lives even harder. The Trust Deed can't last forever surely?
Any help, suggestions really appreciated. I now wish I had gone bankrupt in 2005.
14/08/2011 6:59 pm
Welcome to the forum totalllama.
I think you need to communicate, probably in writing, with your trust deed provider to establish exactly what your remaining responsibilities under under the trust deed that you entered into.
If the payments that you have made thus far do not amount to the amount that you originally agreed to pay over the difference will need to be made up. Your circumstances should be reviewed so that the amount you're asked to pay monthly is in line with your income and expenditure.
If your income has doubled during the period of the trust deed it's possible that some further arrears may have built up that may need to be paid over now as well.
As you appear willing to sell the home to deal with the equity perhaps you should ask for some assistance from your Trustee to sell it now.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
15/08/2011 1:10 pm
I can understand your reluctance to contact your trustee, totalllama, but I'm afraid there is no other way of getting clarity as to how much longer you can expect to be paying in to your trust deed. Hopefully you will get a pleasant surprise and you might be nearly finished!!
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
