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Scottish Trust Deed Forum
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Topic starter
10/10/2009 4:36 pm
Hello,
My husband and I have ?ú20,000 worth of debt and after speaking to the debt advisory trust they have recommended that a Trust Deed is the best option for us.
My husband and I know it's not a light decision and we're trying to make sure we know all the facts before we agree to anything. Someone from the Debt Advisory Trust is going to call on monday night and we want to know as much as we can before then.
We are tenants rather than homeowners and our cars amount to a total of ?ú6000. As we live in a very rural part of Scotland we really do need the cars and we are concerned that we would be forced to sell them. Can anyone tell me whether being a tenant rather than a homeowner would be a problem or whether we would need to sell the cars?
Also, I was told that my credit rating would be affected for the years plus 1 further year but I notice on here it would be affected for 6 years. Please could someone inform me whether this is correct?
Is there anything else I need to know so that I can make an informed decision?
Many thanks for all your help, I really appreciate it.
10/10/2009 6:48 pm
Hi SamQ and welcome to our Scottish Trust Deed forum.
A couple of questions for you to help our experts give an opinion:
How much debt do each of you have individually?
Have you worked out your disposable income yet? This is the amount you could afford to pay into a Trust Deed or other solution each month after paying for rent, council tax, utilities, travel, food, clothing etc etc. If not could you give us an estimate?
If there is a genuine need to keep the cars you should be able to keep them. How the equity in the cars is treated during the Trust Deed is likely to vary from firm to firm and is something you'll want to get in writing before you sign a Trust Deed.
Being a tenant should not cause any problem.
Anything that goes on your credit rating stays there for six years. It's sounds like you've been given IVA advice rather than Trust Deed advice; an IVA outside of Scotland lasts five years so the advice you were given would be right if it was an IVA you were looking at......but sadly is completely incorrect.
You should be aware that mortgage application forms may require you to disclose a previous Trust Deed even if it no longer shows on your credit file - how lenders use that information is up to them.
Please let us know the above details and we'll be able to provide more information that's relevant to you.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
10/10/2009 9:24 pm
Hi SamQ
TDA is correct. The information would suggest that details will be held for 6 years in Trust Deeds.
As far as the cars are concerned, these will be fine if required for work. But please get this confirmed before proceeding. I have never heard of the Debt Advisory Trust, so I'm not sure who or what they are. I suspect they will charge you a fee and pass you to an IP, so please be wary.
The fact that you rent as opposed the being a homeowner will make no difference whatsoever.
Hope this helps.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
