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Scottish Trust Deed Forum
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Topic starter
05/02/2012 3:26 pm
Hi folks,
This is my first post.....forgive me if I waffle a bit.
I have been in a protected trust deed since January 2010 but due to massive changes in circumstances...having another baby, not being able to return to work, husband on low-ish income....I have been unable to make the monthly payments initially agreed when I only had 1 child and was in employment. (my husband also has a protected trust deed)
I have been in regular contact with my insolvency practitioners who allowed me to make a small payment each month even though I was finding this difficult and mentioned to them many times that we may have to think of other options.
Finally, I recieved a call from their Edinburgh office around 2 months ago and was informed I should not make any more payments towards my trust deed and that they were going down the 19.5 route because I simply cannot afford to keep up the payments and this would extend the trust deed by many years.
Apparently, due to changes in claiming back VAT( I read the really helpful information on here regarding this), I was informed my trustee could not discharge himself until he had claimed this money back.
Will I definitely be informed when he has discharged himself, how long could this take and how soon after the discharge can I apply to the courts to become insolvent? I don't know much about this at all or how the LILA option works. How long would I be bankrupt for? Sorry for the long screed....I'm a bit stressed, did not foresee this outcome when I signed my Trust Deeds way back in 2009.
Oh, I rang the Edinburgh office again in January to check if any progress had been made. Apparently, we are no further forward. I just want to get the ball rolling so I don't have this hanging over me for any longer than is neccessary.
Many thanks for reading and for any advice you can give. This is a fantastic site by the way [:)]
P.S. Due to living in a small, close knit community, I would rather not go to anyone around here for financial advice. Thank you. xx
05/02/2012 4:35 pm
Hi mrsmoo
Your trustee will need to proceed to discharge himself and their is a requirement for him to notify you of this.
I wonder what timescale they are looking at as the VAT thing is only to collect his own VAT payment.
Personally, I would have this done immediately and see no real reason for any great delay. As soon as the discharge takes place, you are able to petition for sequestration.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
05/02/2012 7:51 pm
Hi mrsmoo
As Mark says, the Trustee has to advise you when he is discharged. this will then allow you to apply for your own sequestration. I would hope the Trustee does this as oon as possible to allow you to move on.
Shona is not currently posting in the Trust-Deed.co.uk forum.
Topic starter
06/02/2012 11:52 am
Hi Mark and Shona,
Thank you for your helpful replies, very much appreciated indeed.
I spoke to MacGregors in January and was informed nothing had moved forward because they were dealing with so many individual VAT cases etc and that it could be 'Some time' before my Trustee discharges himself as he won't do this without claiming his money back!
I guess I'm stuck until they do their thing which is unbelievably frustrating. Good job I'm a patient person.
Thank you again for helping...xxx
06/02/2012 1:02 pm
Welcome mrsmoo!
Shona/Mark et al, what happens to payments which have already been made in a case like Mrsmoo's? Do the creditors which were included in the original TD get their share of what payments have been made? Or do you get a refund (hah!) or does the Trustee take it as fees?
Just curious 🙂
Pam
06/02/2012 2:18 pm
Hi pammy1969.
Any contributions made will firstly be used to pay for the work done to that point by the Trustee. As much of their work is done at the start of the trust deed process, this can often absorb the contributions made when a trust deed has to be ended early in circumstances like this. Any surplus would go to creditors.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
10/02/2012 9:23 am
Thanks for the welcome Pammy [;)]
I also asked those questions and asked would happen with me only making small contributions towards my trust deed over the last year or so.
Would I owe my Trustee money for any work he had done??? I was informed he could take me to court for any monies owed to him during the term of my Trust deed once he has discharged himself......quite worrying!!
Hoping he doesn't though.......x
10/02/2012 10:12 am
Hi mrsmoo.
If you go bankrupt after being discharged from the trust deed (see previous comments from Mark and Shona) that possible debt to your Trustee will no longer exist.
Legal action is usually only taken when a creditor thinks that a debtor can afford to repay what is due and is choosing not to. Your trust deed firm are well aware that your financial circumstances have changed for the worse, so I think it unlikely that they would want to expend time and money on legal action.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
