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Scottish Trust Deed Forum
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Topic starter
11/07/2013 9:15 pm
my trust deed I was told will be extended for another 2 year is this
allowed . I understood that when you finished the 3 year period that
your depts. were paid off.
due to me having a share in my flat they want me to get a third party to raise money.
I am about 75yrs old and on a small pension which just covers the td payment but this leaves me with no spare cash for like of haircuts etc !!!
Q. can I cancel the direct debit and what will happen if I do.
also the cost of £100 per hr these companys are charging should be questioned by government
what do you think.
11/07/2013 10:56 pm
Welcome to the forum styne01.
You should have been told that when you sign a trust deed your assets vest in your trustee. They then have a duty to raise the value of those assets to help repay your creditors.
How much is your share worth? How much do you pay to your trust deed each month?
If you cancel the payment the property may be at risk of being sold, you might be made bankrupt, or the trust deed might be failed leaving you back with some or all of your debts.
The fees charged by your trustee were agreed by you and your creditors. I appreciate that they can seem high, but they're in line with similar professionals like lawyers and accountants.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
11/07/2013 11:01 pm
I think it highlights why things should be made absolutely clear at the start concerning contributions and equity. These are separate and need to be dealt with on this basis. The normal process is to extend the trust deed to collect equity. As mentioned, if you cancel payments, then the property may be at risk.
As for fees/charge rates, these are in line with normal professional fees and NEED to be agreed by creditors before trustees are paid.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
12/07/2013 9:15 am
Hi Styne01,
I'm sorry to hear of the difficulties you are having with regards to your Trust Deed and the payments especially at your stage of life.
I wouldn't cancel the direct debit as this will only cause further problems for you as Mark and TDA have advised.
TDA asks two important questions regarding the amount of equity in the property and also how much you are paying per month to your Trust Deed. You want to make sure that if you do extend your payments for a further two years this will pay over the equity and bring your case to a close without any further issues.
Who are the other owner(s) of your property?
I realise that the costs that firms like mines charge can seem high to people but unfortunately these costs as in line with other professions. Our fees are very well regulated and have to have the approval of creditors. At the moment a large number of creditors are represented by two companies who effectively tell us what we can charge as a fee and if this is too much then they will object to the Trust Deed proposals at the outset.
David is not currently posting in the Trust-Deed.co.uk forum
