Welcome to the trust deed forum pipsy.

Creditors can issue default notices on the accounts in your trust deed if they wish and are quite likely to do so. Like any credit event (including the trust deed itself) they will remain visible for six years. You can read more about this at:

http://www.trust-deed.co.uk/news/defaultnoticesandyourtrustdeed.php

I think most employers probably don't do credit checks, though certain types of employment are more likely to do so than others. If you let us know about the type of work you do (or plan to do in the future) we'll be able to give some more feedback. Employment isn't an issue for most people in connection to a trust deed.

You'll be expected to pay into your trust deed what you can afford to repay. This will partly be based on your monthly income. The equation is to subtract from your monthly income a reasonable amount to cover your necessary expenditure. You'll work on this with your trust deed adviser before agreeing to go ahead so you should know where you'll stand in advance. The surplus is paid over into the trust deed, and the amount will be reviewed periodically during a trust deed. You can read more about this at:

http://www.trust-deed.co.uk/trustdeedexpenditureguidelines.php

If you sometimes receive overtime, or commission or a bonus you'll want to check how they'll be handled before starting your trust deed.

You'll also be expected to pay over the value of any significant assets that you own as well. For example if you are a homeowner with equity in your home, or you own a car worth more than £3000, you may have to pay over additional amounts to cover the value of the assets.

If you come into money during a trust deed you're likely to have to pay it over. Examples might include an inheritance, or a lottery win for example.

If your financial circumstances take a turn for the worse, through no fault of your own, your trust deed payment should be adjusted and you should not be penalised.

Your commitments to the trust deed should be apparent in the trust deed documentation itself (and any other confirmations you request before signing).
You can take pretty much anything to Court so long as you have the basis of a case and deep enough pockets. As most of us don't have thousands and thousands of pounds to take legal actions I'd suggest that you focus on avoiding future problems proactively by:

1 - Choosing a trust deed firm that you have reason to trust.
2 - Meeting them and asking lots of questions.
3 - Getting written confirmation of how your assets will be treated (before you sign).
4 - Getting written confirmation of how extra income will be treated.

Hi,

Thanks for the quick and informative reply wish every forum was as good.

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Creditors can issue default notices on the accounts in your trust deed if they wish and are quite likely to do so. Like any credit event (including the trust deed itself) they will remain visible for six years. You can read more about this at:

http://www.trust-deed.co.uk/news/defaultnoticesandyourtrustdeed.php

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The website mentions:-

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When you start a trust deed lenders are notified that a debt owed to them is to be included in your trust deed. Often a lender will file Default Notices relating to that account as soon as they receive notification of the trust deed; however this is not always the case.

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Do yous have a list of companies that file for default notices or is there anyway I can check by phoning them? I really do not want a default going against me.

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I think most employers probably don't do credit checks, though certain types of employment are more likely to do so than others. If you let us know about the type of work you do (or plan to do in the future) we'll be able to give some more feedback. Employment isn't an issue for most people in connection to a trust deed.

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I work in the financial field so and they all require a credit check to be passed to gain employment. Will having a trust deed lower my credit rating score I think its at 850 odds last time I checked. What will it be reduced to approx?

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You'll be expected to pay into your trust deed what you can afford to repay. This will partly be based on your monthly income. The equation is to subtract from your monthly income a reasonable amount to cover your necessary expenditure. You'll work on this with your trust deed adviser before agreeing to go ahead so you should know where you'll stand in advance. The surplus is paid over into the trust deed, and the amount will be reviewed periodically during a trust deed. You can read more about this at:

http://www.trust-deed.co.uk/trustdeedexpenditureguidelines.php

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So, how would this work if Job Seekers Allowance was your only income coming in? Would you be expected to repay into your trust deed while on benefits which almost gets you by?

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If your financial circumstances take a turn for the worse, through no fault of your own, your trust deed payment should be adjusted and you should not be penalised.

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So, say for example my benefits stop due to my NI contributions expiring/ran out would I be expected to pay anything into my trust deed? And if I gained employment I would have to increase my payments depending on my salary?

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1 - Choosing a trust deed firm that you have reason to trust.

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Is that not yourself or do you refer people to these companies?

Thanks.

Hi pipsy.

You should expect your creditors to file default notices if you go ahead with a trust deed. Most will as you will no longer be meeting the contractual terms originally agreed. The same would likely be the case if you missed payments, did a debt management plan, the debt arrangement scheme or went ahead with sequestration. It's the way that lenders report to the credit reference agencies and each other that an account is behind (for whatever reason).

A trust deed is a serious credit event in itself (more so than a default notice) that will have ramifications for your ability to obtain credit and quite possibly your credit score. We're not experts on credit ratings or scores and couldn't tell you by how much your score might decline. Besides, I think that there are so many other factors at work in determining a credit score that any prediction could only be a wild guess anyway.

You shouldn't be expected to contribute to a trust deed if you are depending upon benefits income alone.

If your circumstances improve or worsen during a trust deed your payment should be reviewed.

I'm a debt adviser who works within the advice team for this website. This website is not itself a trust deed firm. Mark, Shona and Kevin who also answer questions here each work for different trust deed firms based in various parts of Scotland.

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You should expect your creditors to file default notices if you go ahead with a trust deed. Most will as you will no longer be meeting the contractual terms originally agreed. The same would likely be the case if you missed payments, did a debt management plan, the debt arrangement scheme or went ahead with sequestration. It's the way that lenders report to the credit reference agencies and each other that an account is behind (for whatever reason).

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So, it seems from what you state the a default notice isn't life threatning just like missing a payment and won't effect my ability to gain employment?

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A trust deed is a serious credit event in itself (more so than a default notice) that will have ramifications for your ability to obtain credit and quite possibly your credit score. We're not experts on credit ratings or scores and couldn't tell you by how much your score might decline. Besides, I think that there are so many other factors at work in determining a credit score that any prediction could only be a wild guess anyway.

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I understand. Is it possible for my credit score to still be decent after having a TD in play? I read on another website that if you set up a DMP it knocks off 200-300 points off your credit score is that the same as a TD DMP?

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You shouldn't be expected to contribute to a trust deed if you are depending upon benefits income alone.

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Would this be for the period you are unemployed? Is their a limit for some people it takes 6 months to 1 year to find employment.

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If your circumstances improve or worsen during a trust deed your payment should be reviewed.

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Can you ask for a review or is this monthly/quarterly meeting with your adviser?

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I'm a debt adviser who works within the advice team for this website. This website is not itself a trust deed firm. Mark, Shona and Kevin who also answer questions here each work for different trust deed firms based in various parts of Scotland.

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If someone lives outside the UK but is a UK citizen can they have a TD?

Sorry for the bunch of questions I like to be specific.

Thanks.

Hello pipsy.

I'm not saying that a default notice will or will not affect your chances of securing employment. Only an individual employer can decide that as it's their decision only.

Where I'm coming from is that you can either afford to repay your debts, or you cannot. If you can afford your debts there's no need to consider a trust deed or other debt solutions (and they all should be considered to be last resorts). If you cannot afford your debts as they stand the options are either to look at one of the debt solutions which are available (and which will almost certainly lead to default notices being issued), or to carry on borrowing more and more money (which obviously is likely to end badly at some point).

There are people posting on this forum who work in financial services and are curently in a trust deed. There was a thread a few months ago from someone who got turned down for a job which she thought she had won (in financial services) when she disclosed her trust deed, but who a few weeks later found a comparable job in financial services with an employer that took a different attitude.

I'm not sure that your credit score is entirely relevant to your employment prospects. I think an employer would probably be looking at how much debt you have, whether repayments are up to date, and for reporting about issues like default notices or a trust deed which signify repayment issues. I've never heard of any kind of scale by which people can predict how much their credit scores will go down according to having gone ahead with certain debt solutions. If you've read something along those lines I can only assume it refers to the writers own personal experience of what happened to their score.

If you lose your job during a trust deed the Trustee has some discretion as to how long they'll allow you to take to find new work. They wouldn't normally seek a contribution from benefit income as it's designed to cover basic needs only and has no scope for debt repayments built in.

During a trust deed you'll be approached once or twice a year to review your financial situation. If something significant changes for you between reviews you'll want to bring it to the attention of the trust deed firm so that the payment can be adjusted upwards or downwards as appropriate.

If you live abroad could you tell us how long it is since you moved away and whether you retain a home in Scotland?

Hi Pipsy,

You need to be "habitually resident" in Scotland (not UK) to be able to sign a trust deed, ie living here at least some of the time.

Are you expecting to be laid off, or are you currently out of work?

Hi Pipsy

As Kevin said, you have to be habitually resident in Scotland.
I am a bit confused; you say you work in the financial sector, but you seem very worried about unemployment. Is that in case you loose your job because of a Trust Deed?