I would be very surprised if the trustee has your title deeds. However, it sounds as though there are loose ends so I would recommend speaking to the IP directly to tie them up.

Thanks for your feedback, i dont really want to call them as they didnt seem very helpful at all, they sent me a six month review to complete, even though we are not in a Trust Deed. When i called the receptionist said yes just fill it in and send back and i had to explain again when she then spoke to the IP who then said to tear it up. So not sure they would give me the correct answer anyway. I just wondered if the IP would request the deeds of your house when applying for a TD. Thanks

Hi there

I'm not sure what you mean by 'applying for a Trust Deed' The Trust Deed is signed or not signed.

Could you let me know exactly how you were aware that they tried to get your title deeds and who the company is. I am slightly nervous/concerned at a company that would attempt this and then send out a review form when no Trust Deed had ever been signed.

Mark

Hi there

Sorry, I just noticed your earlier post. I am unsure why you have been put in a DMP as the Trust Deed is still in force, even though it is unprotected.

I note your comment on not being able to consider bankruptcy as you are both self employed. Could you clarify why, as I have a large number of bankruptcy cases where the individuals are self employed.

Mark

Hi again, sorry not sure that i understand what you are saying, my understanding is that we signed to enter a trust deed, we were told that the trust deed was rejected, therefore, asked if we could go on a dmp, we are paying no money into the trust deed and are paying a monthly payment on a dmp. I really am confused!! please help.

Hi there

I don't get this at all. Looks like you contacted a company who passed you to an IP who had you sign a Trust Deed which failed. The IP then passes you back to the DMP company and kind of leaves the Trust Deed shelved! Hoping it will go away.

This Trust Deed terminates only on the earliest of the following events:

1. an award of sequestration of my Estate (whether or not such award of sequestration is subsequently recalled or reduced);
2. the final distribution (which, for the avoidance of doubt, shall include a nil distribution) of my Estate by my Trustee in accordance with this trust deed;
3. An offer of composition accepted by my creditors and administered and finalised by my trustee.

Can I ask why sequestration is not an option?

Mark

I dont know is the honest answer, we went to a company called Hanover Sterling who put us in touch with an IP KLM Associates, we signed to go ahead with the trust deed and when the creditors rejected this, the IP said we had to apply for bankrupty which we didnt want to do, i asked if we could go back to the dmp and they said yes and sent me a letter saying that my file is now closed. After speaking with Hanover Sterling and investigating further we ended up going with a company called payplan which meant all monies we paid were going to the creditors.I hope that makes sense. I hope you can help as i am really starting to worry about what we have done.

Just to add on to the above post, i just looked out the letter from KLM and the letter says The above named Trust Deed has failed due to the level of creditor objections and I now advise you of my resignation as trustee in this case.
Does this mean that we are not in a Trust Deed? and we are ok to be in a dmp. I look forward to your reply.
Thanks again

Hello again

I'm not surprised you are confused! This is a bit of a grey area to my mind, I guess because the law on trust deeds changed just recently and all of the issues are not yet clarified.

A trustee can now write to creditors and request that they be discharged as trustee and that a trust deed's protection is removed - effectively "cancelling" the trust deed. It is meant to be an option for the trustee if the debtor is not cooperating with them.
Your situation is different in that your trust deed never received protection in the first place and you weren't being uncooperative, but it looks like the IP in question has used this option nevertheless.
Not sure of the legality of this, but in practical terms I guess the trust deed is basically defunct and you should have no problems regarding the owenership of your property.
Sorry - maybe not the definitive answer you are looking for!

Hi Kevin thank you for your help once again it was really much appreciated and my mind is a bit more at ease.

One more question sorry!! As I am not in a Trust Deed do you know if it is possible that I can have my name removed from the Edinburgh Gazette or does that have to stay for ever. Thanks again

Hi guys

Kevin is correct that a Trustee can write to creditors and have the protection of the Trust Deed withdrawn, but the guidance appears only to be where there is non co operation, not on the basis of objections and therefore a failed Trust Deed.

I think you need to clarify the position with the IP and have the position confirmed, otherwise you may be in an unprotected Trust Deed and also a DMP.

Is bankruptcy a possible solution here?

Mark

Hi again, i dont want to go down the bankruptcy route it scares me to be honest and would never forgive myself if we lost our house.

With regard to the letter saying that he has resigned as trustee does that not mean that he is no longer our Trustee? I did call them a month ago to ask why they sent me a financial review and when the secretary checked with the IP she came back and told me to tear it up.

Okay i have called the IP and have been told that i am definately not in a Trust Deed and that my only way of sorting my situation out would be to go bankrupt, I mentioned that i was on a DMP am i still okay to be on that, she said yes thats fine although creditors can still do diligence on you. Im not sure that im comfortable with what they have told me or in fact are they going to come back to me in 2 1/2 looking for fees.

Hi there

Sorry to be the belts and braces guy, but I would look at 2 things which would at least give you both peace of mind:

1. I think you need confirmation in writing from the Trustee that he has taken the appropriate steps and been discharged from the Trust Deed. The fact that you were sent a review form slightly worries me. If you get this in writing, then all the onus is on the IP.

2. You need to look at the facts of bankruptcy to see if this is an option. There is a whole perception of bankruptcy which is totally wrong. Personally, I have never sold a house in a TD or bankruptcy. You can still work, eat, go out and socialise with other people believe it or not! It doesn't appear in the local paper, you don't go to court or jail and it will be finished long before the DMP.

If you need any advice, guidance etc, then Kevin and I will be delighted to assist.

Mark