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31/01/2011 12:12 am
My wife and I are looking to sign a trust deed. However the insolvency practitioners have seen fit for for us to include my wife's student loan in the trust deed. To be clear, my wife is an American, and the student loan is a USA-based debt, not a UK debt. We do not want to include this loan in the trust deed, as we have budgeted to continue paying this ourselves and have declared so on the financial statement. Can we ask the trustee to remove this loan from the trust deed agreement? Can they force the loan to remain part of the trust deed?
Also, they have record of my wife's US bank account (which is empty except for the $100 we send for her loan payment each month) Can we ask them to remove this from record as it is not UK based.
We plan to move to the States after this TD is satisfied, and we cannot afford my wife's credit in the States to be poor when we move out there. Any advice is welcomed.
31/01/2011 10:15 am
Welcome to the trust deed forum digitaldamo78.
The usual premise for a trust deed is that all unsecured debts must be included. A failure to do so risks treating those creditors that are included in the trust deed unfairly (as they are asked to write off debts while another creditor expects still to be paid in full).
Whether the fact that the loan that you would prefer to leave out is from the USA makes any difference is an interesting question. I'm going to defer the answer to our experts who work in trust deed companies to see how they would propose to handle this situation if it were one of their cases...
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31/01/2011 11:19 am
Hi digitaldamo78
I've not come across this before, one of the other experts might have, but my thoughts are that because you have disclosed that you have this debt it would require to be included in the Trust Deed.
As long as you are able to provide bank statements for the American bank account showing that it doesn't have funds in it, I don't see why your Trustee would have to write to them.
Julie
As long
Julie is not currently posting in the Trust-Deed.co.uk forum.
31/01/2011 9:46 pm
I'd agree with Julie - the problem is that the money going to pay that debt in the US could be going in to the trust deed instead, so it cannot be ringfenced as an item of expenditure as it is unfair to the rest of your creditors. However, once a contribution level is set, if you can find a way of paying that debt whilst meeting the obligations the trust deed then there is a good chance that any US credit rating would not be affected.
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