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Scottish Trust Deed Forum
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Topic starter
19/06/2010 9:50 pm
My husband and I were in separate TDs but we were not managing the monthly payments. We spoke to trustee on numerous occasions and requested payment break/reduction over longer term-we were told this was not an option, they would tolerate only short-term (3 months max) reduced payments from one of us but not both. Then my husband, the main breadwinner, was made redundant-TD payments not possible. After 2 months on JSA he's managed to secure a 3 month contract working away from home(which may or may not be extended). Because we have young kids I can now only work max 16 hrs a week (while theyre at school not during hols). We told them that without flexibility on payments the only other option for us was sequestration. Funnily enough they then offered to(a) reduce monthly payments by almost 50%!!! or (b) offer payment break. Too little too late as I had already decided, because our financial predicament was so hopeless, to go back to uni, sod the TD and opt for sequestration. Now TD firm are resigning from both TDS leaving creditors to pursue. I understand it was my decision to go back to uni/reduce my income but what is the situation for my husband??
tracy Crawford
19/06/2010 11:00 pm
Not sure what you are asking exactly Trixie. Presumably you will both apply for sequestration? Your husband will be asked to contribute to his sequestration if he is able to.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
Topic starter
21/06/2010 9:14 pm
Hi Kevin,
I understand I need to petition for my own sequestration as my change of circumstances was deliberate. But does my husband have to petition for his own sequestration or is it the obligation of the TD firm, as his change of circumstances (redundancy) was outwith his control?
Even if he does manage to secures long-term employment he would be unable to make contributions due to my reduction in income.
tracy Crawford
22/06/2010 12:23 pm
Hi trixie
No, your Trustee will need to petition for you both.
In your own circumstances, he could also be discharged from the Trust Deed and you would lose the protection from creditors.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
22/06/2010 5:45 pm
Hi Mark,
Our trustee is resigning from both TDs and said I need to petition for myself because my change in circumstances was within my control. Initially said that they would petition for my hubby but recent letter now says they are resigning from his TD also and so he will need to petition for himself. In both cases our creditors will be free to pursue. We both intend to enter sequestration anyway my only issue really is whether we have to pay the fee or them? I have spoken to them several times about this issue and each time get a different answer. Any advice much appreciated!
tracy Crawford
22/06/2010 7:07 pm
Hi Trixie
The Trustee can resign on the basis of non co operation, not because you are no longer able to meet the payments, so the onus is on them to petition and cover the cost.
Do you have a copy of the Trust Deeds? It would be interesting to check the part in the TD on 'Resignation of Trustee'
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
22/06/2010 9:00 pm
Under the section 'Resignation of Trustee' it states 'I confer on my trustee power to resign at any time and to appoint a successor or assume an additional trustee, such appointment to include one that takes effect only upon the death of my trustee, loss of her permit to act as an insolvency practitioner or becoming a patient under many statute relating to mental health'
In a separate document it states 'failure to make contributions as agreed...can result in trustee petitioning for your sequestration'
I cant find anything else relevant.
I read a similar topic that came up on this forum recently which is why I queried their decision to resign. They assured me at that point that they would still be the ones petitioning for our sequestration so I didnt push the matter further. Then surprise surprise that is not how they intend to proceed after all. Does my decision to go back to uni constitute non-cooperation? Does my husbands position constitute non-cooperation? It may seem petty for me to make such a big deal of who pays fees but Im sick and tired of being misled by these people.
tracy Crawford
22/06/2010 9:12 pm
Hi trixie
it appears the Trustee is unable to resign on the grounds stated and requires to petition for your sequestration.
Non co operation is a failure to contact or provide info, not a change in circumstance.
Who is the Trustee?
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
22/06/2010 9:44 pm
Thanks for the quick reply-its Buchanan Roxburgh
tracy Crawford
27/06/2010 9:40 am
Mark is right, of course - though it seems that in practice some insolvency pactitioners are ignoring the Accountant in Bankruptcy's guidance on this matter.
If you really wanted to challenge this then I guess you'd have to take it up with your trustee's professional body.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
