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Scottish Trust Deed Forum
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Topic starter
12/04/2012 1:42 pm
Hi
Im 28 with around £13,000 in debt and I was about to take on a trust deed then I found out that I have money invested in my name from my parents. I was keeping the trust deed from them as I didnt want them to find out but they have.
They are wanting to clear my debt and I have spoke to the insolvency firm about the situation and they have told me about a full and final settlement fee which would be up to 75% of my debt. Im waiting on hearing back the amount, however as it is my parents that are going to pay it then I would owe them. do the insolvency company or my creditors need to know that i have this money invested in my name as it is more than the amount I owe and dont really want to pay it if I have to as the money invested is my inheretance. I know that I did work up the debt but a lot of it is interest.
Also if i do agree a full and final settlement can I claim back ppi at a later date?
thanks
12/04/2012 1:58 pm
Hi kerr134.
Do you mean a trust deed based on a lump sum, or an informally negotiated full and final settlement?
If it's the first you'll need to declare all assets including your savings.
If its the second there is no guarantee of success and you may well be asked about any assets that you have.
Both options are likely to damage your credit status.
As you can afford to do so, you may just choose to repay what you owe.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
12/04/2012 2:29 pm
Hi
It would be the second as I have not signed the trust deed yet. At first I did not know about the assets but I do now, the insolvency company are phoning me back tomorrow with a figure.
As my credit card debt is with the debt collecters they have sent me letters with early redemption figures. The letters have said that credit rating will be affected but surely not as much if you were to go into a trustdeed.
I have also got payday loans that were going to be in the trust deed. Would it be better to pay them off as soon as I can to avoid interest or wait and see if I have success with the full and final settlement figure?
I will have to wait and see what they come back with tomorrow.
its 1 big horrible mess.
12/04/2012 2:38 pm
Hi kerr134.
This situation is quite different to most we advise on as you have told us that you are in a position to fully repay what you owe.
If your credit rating is important to you then I would suggest paying the debts back in full.
If it isnt then you may wish to try to negotiate settlements yourself or using an intermediary. As you mention, as time ticks by interest will likely see the debts increase so it's probably best to make decisions fairly soon.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
