Hi gillianr2

Phew! That was like an exam question. Can you advise me what a dh is?

Looking at the points raised, I assume the car was in your husband's name and therefore it is an asset. The Trustee will require the payment of the value from a third party or they can sell this.

The comment that you sold the car and the Trustee in a bankruptcy would be unhappy is a strange one. In a bankruptcy, everything starts from day 1 again and the car as at the date of the bankruptcy would be looked on as a new asset.

He would be unable to petition for bankruptcy as only the Trustee could do this through non co operation, however if he is struggling to make the payments and there is no equity in the house as you state then this appears to be the better option. The trustee would re assess the ability to pay based on your current income/expense.

On the point of the inheritance, this will vest (belong) to the Trustee as an asset and his failure to diclose this may be an offence.

Not sure if this helps

Mark

lol @ exam question - sorry I do have a tendency to waffle on and on and never seem to reach the point. I have so much to try and get out and find it difficult to get it out in any sort of ordered manner.

Dh is my husband, sorry I should have clarified this.

I too felt that bankruptcy was the bedt option for my husband but the trustee was very against this and said she had no intention of making him bankrupt unless he wasn't co-operating but then she went on to say she would treat him as not co-operating if he missed any more payments, which he has done. The car was in my husbands name and he sold it so we could buy a bigger car for our growing family but he didn't seek permission to do so and there was approx £1200 left over from the sale which he didn't hand over to the trustee, we used it for house improvements (urgent ones like heating). The trustee looked at this very dinly and we now realise we were wrong to do this. The other "problem" is that when we bought the new car I went to pick it up and signed for it so now it is actually registered in my name although we were able to prove that it is owned by my husband through receipts for my LILA application so it is provable that he paid for it. The trustee said that if he were to go for bankruptcy then they would ask him why he sold the last car during the trust deed and gained money out of it which he didn't declare and said that it could mean he be rejected for bankruptcy. The car is an absolute must for my husband as we live in a tiny village and he work 25mls away in another village which there are literally no buses running to from where we live and he couldn't downsize the car either as we are due twins so will have 4 children under 4. The car is worth around £3300 on the open market.

The ideal situation for us would be for him to be able to go bankrupt but we are not sure how to go about this without relations breaking down with the trustee completely as she has already said she has no intentions of making him bankrupt and she has a very short fuse with us as it is.

The other possible option we have been hoping to look in to is the mortgage to rent scheme as we have around £2500 arrears on the mortgage but the main problem with this is that the house is only worth about £80k and there is £97500 outstanding on the mortgage so not sure how that would work?

Your sister-in-law's offer to pay in a lump sum to the trust deed could be an attractive option to your husband's trustee in finding a way of tying up the trust deed that suits all parties. You would really need to discuss it with them, but there is no reason that this sort of arrangement might not be possible, rendering a sequestration unnecessary.

Mortgage to rent is not impossible, but very unlikely I'm afraid, if there is negative equity in the property.

Thanks for that Mark. I guess its a case of waiting and seeing what exactly is in the will before we would know if there even was enough to pay off the remainder of the td. The other option is the certificate of sequestration but we dont know alot about that and with the trustee saying she will not let him out of the td we dont know how that would work.

Hi gillianr2.

As Mark mentioned sequestration of any type will only be possible with the involvement of the Trustee.

As such I think it will be best to positively work through everything with the trust deed company once the situation is a little more clear.

Hi Guys, first time poster so please bare with me.

I am 12 months into my trust deed, and am adhering to all the payments and terms associated with that.

I have a third party who is prepared to clear off the outstanding amount of the TD. 2 Questions, is this possible, and how should I approach my Trustee about it??

Many Thanks in Advance!

Hi pd2002 and welcome to the forum.

It certainly should be possible to bring the trust deed to an early conclusion if a third party will pay an amount equivalent to that which would have been contributed over the next two years.

This is good news for all involved, especially the creditors who will receive their money sooner.

I think it's best to call your trust deed company representative and make your proposal to them directly. I would have thought that the feedback will be positive.

Thank you so much for the prompt reply. I will give my trustee a call and see what they say.

Can you please advise me on the following issues, I dont know how to get correct advise till seeing your forum. I have been in a trust deed and am scheduled to be finished in June 2011. I have this yr earned a bonus which will be around £8000 which will be paid in january ( not something I have ever enjoyed before in my working life). I am up to date with payments in my trust deed bar one which occurred due to my salary going in late once. I made a payment of £50 manually by cheque ( which is lower than the set monthly payment ut all I could afford once the default was highlighted to me) to the accountant which showed on my balance then the accountant debited it as he said he did nt know where it came from and credited it into (my ex girlfriends trust deed) another trust deed account. I have asked him to re-credit the sum into my trust deed as it was my money paid by me in my trust deed but he refuses on the grounds that she/my ex has made many shortfalls and I have not so he presumed the money was from her.Ive confirmed it was my money and the cheque altho from our old joint account was signed by me, which he has confirmed, but still he will not put the money back in my account where it was taken from by him. so it looks as tho I have missed a payment in full which I feel is very unfair and may reflect on me as a complete default for one month in the 3 yr process. Please can you tell me if he can do this. Other than that default I have stuck to plan since it began without failure and in actual fact when my trust deed review showed £30 left over per month he claimed that too incresing my monthly payments from £250-£280pm, leaving me without 1p each month as emergency funds for anything what so ever, even my sons Christmas or birthdays. can you advise me if he is permitted to do this as its left me so hard up every month I wonder if he is trying to push me into deeper debit surly when in a trust deed you can have some pocket money even £10 permonth, how can anyone survive on absolutely no free funds from month to month. I recently got a speeding fine and I had to borrow money to pay it. I believe I should hand over all my bonus when it comes but can I finish early by using the bonus to pay the remaining instalments as well as handing it over.
I would be so very grateful for advise as my trustee seems to just send me very hard line letters and demands everything he can get out of me.he seriously does not permit me £1 in my pocket each month( life has been so tough in the trust deed can it end early with my new cash flow opportunity. I would love so dearly to move on its been horrid dealing with him and I am fearful of communicating with him as my trustee. kindest regards zm

Hello Zjm and welcome to the forum.

I'm not sure about your question regarding the £50 cheque. Clearly you intended to make a payment, you signed the cheque, but it was drawn from funds that belonged to both of you (with each of you having signed trust deeds with the same trust deed company). Common sense would tell me that it should be credited to your trust deed, but your Trustee may technically have a right to apply it to either of your trust deeds. Hopefully in time one of our experts can add their opinions on this.

Your trust deed payment should be calculated by subtracting your necessary expenditure from your income. In some areas there are allowance guidelines that should be used, for example your housekeeping costs. The idea is that you remain in a position to live reasonably (albeit things are likely to be quite tight). Could you let us know what has been allowed to you on your income/expenditure to cover some of your costs such as food, clothing and so on? That will allow us to comment on whether the trust deed payment you are being asked to make each month is consistent with what most trust deed companies would decide (and what would generally be accepted as being fair to all of the parties involved).

The bonus that you have received is likely to have to be paid in full to your Trustee to help repay your creditors (unless you have an agreement written into your trust deed for you to keep a certain percentage of it). I'm afraid that payment of the £8000 bonus would not normally prevent you from also being required to continue the monthly payments into the trust deed until they are completed.

I don't think your trustee can just pick and choose whose trust deed to allocate the payment to. If it weas paid in to your trust deed in good faith then you have every right to expect it to be credited to your trust deed I'd have said.

Hi Guys, further to my previous post. I have contacted my Trustee regarding a third party paying off my trust deed early. They've told me that only a change in my circumstances could trigger such an arrangement. I.E I no longer have the ability to continue paying the existing arrangement. As I technically can continue to pay the existing arrangement this puts me in a position of having to tell a lie, or continue for the next 2 years. Can you tell me if this is standard practise and offer any advise of how to respond to my Trutee.

Hi pd2002.

As you'd expect everyone here is going to suggest that you continue to be straightforward and truthful with your Trustee. I'm interested to hear what Kevin, Mark or Julie think about this.

If the source of funds is a third party I cannot see the downside for anyone involved if this were to happen (the upside of course being that the creditors get their money sooner, and hopefully they get a little more as the Trustee's fees could be reduced due to the shorter term).

That's exactly what I thought, I don't understand their reluctance, everybody involved wins?