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Scottish Trust Deed Forum
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Topic starter
11/03/2012 9:37 pm
Hi there,
I have around £15,000 of debt (credit card/unsecured loan/overdraft). I purchased a caravan for £7000 which was what the loan and was for, however, my debts are getting out of control and from a salary of around £1000 a month, I'm now paying around £600 a month repaying debts.
As you can imagine this is crippling. I have no other assets other than this. As I said, the loan I got to pay for it was unsecured.
Would I be forced to sell my caravan? This is actually my home - I work in a peninsula and I live here for 10 months of the year (I have to move out for 2 months of the year under site legislation so I have the additional cost of extra room rent to a friend per year as well.) Not the best situation, but my debt is preventing me considering moving anywhere else.
Please - any help/info of the best way forward for me would be appreciated.
Thanks,
11/03/2012 10:56 pm
Hi copter and welcome to the trust deed forum.
I cannot see why it would need to be sold. The current valuation of the caravan may be important, it is an asset in the same way as it would be for any home with equity in it.
It doesn't seem like the value will be huge, so depending upon your circumstances there may well be a way to structure a trust deed that allows you to stay put.
How much do you think you could afford to pay towards your debts after all of your expenses are covered (excluding your debt repayments)?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
12/03/2012 1:45 pm
Hi copter,
You may wish to refer to the Section 11 of the Debt Arrangement and Attachment (Scotland) Act 2002 which lists certain items that are exempt from attachment amongst which is a mobile home which is the debtor's only/or principle residence.
Our interpretation, although not one that we have sought legal confirmation, is that as the Caravan cannot be attached we are not likely to be able to realise as an asset in either a Trust Deed/Sequestration and that it should be treated the same way in which we would treat tools of the Trade which are also listed in the same Section of the Act.
Chris
Chris is not currently posting in the Trust-Deed.co.uk forum.
12/03/2012 2:36 pm
Hi copter
I would agree with Chris, if the caravan is your sole residence, then it is exempt. If you have a face to face meeting with someone, then this should be discussed, and you make sure you get it in writing that the Caravan will be exempt from the Bankruptcy or Trust Deed proceedings. If you have it in writing before you sign, you can rest easy.
Shona is not currently posting in the Trust-Deed.co.uk forum.
Topic starter
12/03/2012 3:20 pm
Great! Thanks for this.
Perhaps I can sign up with one of your companies? My local city would be Glasgow, can you recommend a company? Please pm me for my contact details.
Thanks,
Copter
12/03/2012 3:44 pm
Agree with Shona whoever you decide to proceed to get advice with make sure you get it in writing should you decide to go ahead with a Trust Deed or Certificate of Sequestration.
Chris is not currently posting in the Trust-Deed.co.uk forum.
12/03/2012 4:17 pm
Hi copter.
If you wanted to take this forwards with one of the firms represented on this site you can get in touch using the forms on their individual profile pages.
Each of the firms has Glasgow offices.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
12/03/2012 4:17 pm
Hi copter
Any of the Trust Deed Experts on this forum are probably one of the best ways to go!
