Hi RobertGreen94,

I'm sorry to hear of the problems you are now experiencing regarding your Trust Deed.

Can you tell us a little more information regarding your circumstances as it will help us to better understand things:

How much are you supposed to pay per month to your Trust Deed?

What is the total level of your debts?

If you don't mind me asking, what is the overtime that you do required for?

Do you have any assets such as a house or a car?

Is the main problem for you the issue regarding overtime and you having to pay this into the Trust Deed?

It's very difficult to simply end a Trust Deed as once it's signed you ideally need to see this through and the Trustee has a responsibility to realise what they can for the benefit of creditors.

There can be consequences for not co-operating or maintaining your agreed payment to the Trust Deed. Your Trustee for example if you choose not to pay can deduct your payment straight from your salary. It would be extremely difficult to have the Trust Deed made invalid on grounds that it wasn't you that signed it.

In circumstances like this I would always suggest trying to find a way to make things work with your Trustee. It could be easier to arrange a meeting in their office to discuss your concerns and to try and find a way that works for you.

Hi Robert

This is obviously affecting you a lot and it must feel like you are in a very bad place right now. A trust deed should never be something that someone enters into under duress or if not suitable for their circumstances.

There is a simple way to come out of a Trust Deed, but it needs your trustee to agree to it. They could write to creditors advising that they intend to terminate the Trust Deed and seek their discharge. This would have the effect of putting you back to square one and you could set up a payment arrangement/DAS if you wish instead.

Welcome to the forum RobertGreen94.

I'm sorry to hear that you're having such a tough time at the moment.

David and Kevin have already touched on some of the practical considerations applicable to your desire to end your trust deed.

I just wanted to add that I really hope that you will prioritise your health and wellbeing at the moment. Have you spoken to a medical professional about the way that you're feeling? If you haven't as yet I'd really urge you to do so - there are people who can assist you, who want to assist you, and who will help you to manage the way that you're feeling while other things get sorted out.

I'd also suggest (if you feel comfortable about doing so) that you make sure your trust deed provider understands the way that you're feeling. Everyone who works in our industry understands that some of our customers can become very vulnerable at times - when we're made aware that this is the case it becomes much easier to make appropriate decisions and to offer the appropriate support.

Thank you all so much for your responses!! Knowing there may be a way out of this is giving me hope!

David, my debts total around £15,000. The largest single debt in this is £9000 approx, but this does not have any interest attached to it. Before the trust deed I was paying £100/month to this and never missed a payment. The rest of the debt was payday loan/installment loans that I stupidly took out to try and pay off the main debt before I realised the creditor was very willing to let me pay back what I could based on what I could afford.

I pay £125 into the Trust Deed per month, and earn roughly £500/month as I am currently part-time employed. However, I always get very generous overtime because I was a committed employee and was progressing my career before the Trust Deed. So usually my pay is around £650-800 and in peak months over £1000. I still live with my parents but obviously pay substantial rent to them.

I do not have anything that would be classified as an asset to the trustee.

The overtime firstly is needed for dental work that I need done. It's difficult to explain as it is mostly cosmetic, but if I do not get it done soon it will cause problems down the line - health wise and self esteem too which will affect my ability to work. I even stated to the DMC that I just wanted to get a DMP in place as quickly as possible and maybe I could consider a trust deed later if I knew I could then stick to the restrictions. Second of all, I need overtime to be able to have a social life. The amount I was encouraged to put down for my "socialising" expense does not even cover a taxi home from a night out with my friends (due to distance involved in seeing them). Just this month, two of my best friends had a leaving night as they are moving abroad to work yet I could not even afford to go to say goodbye to them. I don't want to give you the impression that I'm going out every night getting drunk and wasting money - it's literally at most 3x a month, but usually once a month, sometimes not at all. It's so depressing drifting apart from my friends because of this. I cannot put my life on hold for 4 years - as I feel at my age this should be the time to set the foundations for how my life will be.

Also, my plan was to go full-time at my job as soon as a position became available (within the next year) but it seems most of the extra income will be taken by the trustee. This removes any drive to get any more hours at work or progress which is extremely unlike me. It's unlikely that I will be able to progress now that I am struggling to function at work and no longer can handle the more senior responsibilies my current job entails.

Surely it's not in the best interest of my creditors to recieve a fraction of what I owe them when I was and still am willing to pay them back in full. Keeping me in the trust deed would only benefit the trustee it seems to me.

Thanks again, David! (And sorry for the essay this post has turned into lol)

Robert.

Kevin, thank you so much for clarifying that it is possible for the trustee to terminate the Trust Deed. Any suggestions on how I go about this? From looking at other posts about the Debt Management Company I went with, it seems they are reluctant to let people talk to their trustee directly. Hopefully if my trustee agrees to do this I can time it right to have a DMP/DAS with the help of a debt charity ready for when the creditors are notified about the termination. It's just depressing to think that by then I will have paid over £1000 and (unless I'm wrong) it will have all went to the trustee and not my creditors.

I just wish debt advisors at certain debt management companies would consider how serious a trust deed is when "selling" it to potential clients. And I would also suggest that it is irresponsible to keep recommending it when the client has stated they would not be able to keep to the restrictions. It feels as if I was trapped into it as I could feel time running out and needed something in place - but I guess for them it's financially worth it with the fees etc.

Thank you TDA for your concerns too! I'll be okay when I get out of this trust deed and have a DMP set up. I used to always dream about a future, even when I was struggling with the actual debt, but now a future seems so bleak - watching everyone else live their life while mine is on hold for 4 years. I have explained I am stressed about the situation to my case worker but don't want to seem like I'm trying to emotionally blackmail them into terminating my trust deed by stating how terrible I feel, but I realise now that you're right and I should let them know the full situation of how I'm feeling. I do not need to see a doctor, I'm not going to go kill myself tomorrow. But I know I will not survive to the completoin of the trust deed, or if I'm made bankrupt - to the date of discharge of that. I have high self awareness so I know what I can and can't handle.

Thanks for your concern again!

Much appreciated,

Robert.

Hi Robert,

Thanks for sharing a lot of information about your circumstances.

Has your Trustee asked you to increase your payments from your £125 per month as a result of the overtime?

Based on your level of debt, if you entered into a Debt Arrangement Scheme paying £125 per month it could take 10 years for you to repay your debts. Is this a timescale you would be happy with? Obviously during this period if you were able to increase your income then you could increase your payments and it would reduce the timescale.

There is something called the Common Financial Statement which is what we are required to use when looking an someone's budget. Within this there is allowances for things like health which include dental treatment. It also has allowances for the majority of other things too. Working through a very thorough income and expenditure is key to any plan being sustainable and affordable. Did this take place when you were considering your options?

I would suggest the best way to proceed is to contact your Trustee in writing and explain exactly how you are feeling about everything. Your Trustee will consider this and then provide you with a written response. In circumstances like this it's always best to do things in writing. You could also ask for a meeting with your Trustee or someone senior in the organisation to put your concerns across.

Thanks David again for taking the time to respond! 🙂

The trustee has not asked me to increase my payments, although I haven't had any reviews as of yet and have only just send my wageslips in for the first 3 months.

If I am able to stop the Trust Deed, I would be able to pay £150 into the DMP/DAS due to the living wage increase so it would take roughly 8 years but obviously I would make an effort to pay more each month that I could. I was also going to be working towards full-time employment at my job so it really would not end up taking that much longer than the Trust Deed - perhaps just a couple more years which I am completely happy with as it would mean I was actually paying my creditors, and didn't run the risk of paying for 3 years and then having it fail only to be reunited with my debts.

I am quite alarmed because I was promised by the person who helped set up the TD for me that nobody would be able to see the entries on the Register of Insolvencies unless they logged in. Well, just by searching my town I can see my entry (and entries for people I know personally too) along with my full address without having to log in or sign up at all. This is extremely distressing.

I am going to email my trustee and see if he is willing to help me get out of this. I will need to file a complaint too as all my concerns were explained away, yet here I am being faced with them.

Thanks,

Robert.

I think you're doing the right thing putting this in writing Robert.

Regarding the Register of Insolvencies login situation, you really shouldn't have been told that. The situation changed a fair while ago.

Payday loan companies are currently being taken to the cleaners over irresponsible lending it's worth contacting them loads of template letters on debt camel

Thanks for all your messages!

Yeah Michelle, one of my lenders actually emailed me yesterday stating they had cancelled the loan, and I bet if I had done a DMP I would have been able to persue that further with other companies - and perhaps some would have refunded me the interest to help pay the original balance off.

I emailed my Trustee but he just forwarded my email to another person in the company. Hopefully this person will get this sorted for me as I really need out of this horrific situation as soon as possible as my life just keeps getting worse and worse. People have now found me on the ROI while searching for their own entry and have told mutual friends (not to hurt me, just in passing conversation). I have a law firm willing to help me take legal action thankfully although they said it is not something that happens often - but apparently I have a strong case for damages - but no amount of money will repair the damage done now.

Please anyone considering entering into a Trust Deed - please at least try all other options you are eligible for before going down that route. Remember, many of these "respected" Debt Management Companies have an interest in you doing a Trust Deed instead of an informal option due to the fees they recieve. If you have even 0.0001% of doubt, try to get a DMP set up first to enable you time to make a decision with all the information and not be pushed into it to get more money from you.

I will keep you all updated.

Thanks!

Hi RobertGreen94.

There are clear advantages and disadvantages between personal insolvency (a trust deed for example) and less formal solutions such as a debt management plan.

Different people in different situations will quite naturally and correctly make different choices.

The main point I wanted to make though is that it's quite difficult to make a case for almost anyone entering a debt management plan when they're resident in Scotland.

The Debt Arrangement Scheme (DAS) works in a similar way to a DMP, but provides a lot more certainty and protection for the user.

I can see why you say that, Robert, given the experience you have had, however it is really not so black and white and will depend on each individual's circumstances.

Thankfully, the vast majority of those entering Trust Deeds have a very different experience and find it can be a real lifeline for them. We hear from them all the time on this forum. If it is a choice between paying into a DMP or DAS for many years or agreeing a Trust Deed with creditors that is finished in 4 years then you can understand why it works so well for so many people.

The issues only arise if a Trust Deed is being put forward as a solution when it is inappropriate. That is why we always urge people to seek expert help and a second opinion.

Oh yes, I do not mean to minimise how beneficial a Trust Deed can be for someone. If it is appropriate for their situation and there is nothing to stop them from sticking to the restrictions then it will indeed be a lifeline.

I just want people to realise that if a Debt Management Company keeps trying to get you to sign a Trust Deed with them after you have stated multiple times that you could not stick to the restrictions then look elsewear immediately - before they catch you in a vulnerable moment. Signing a Trust Deed when it is known you will not be able to fulfil all the requirements will only benefit the Trustee (especially if the fees are front loaded like mine are) as they can collect their fees and then recommend bankruptcy down the line. But maybe there is a valid reason to be recommended to do a Trust Deed even if it is not something you can stick to?

And yes, a second opinion is crucial as if I had not been given incorrect information I would have never signed the trust deed in the first place. I think doing your own research on all the different options and deciding what you want to do BEFORE contacting a Debt Management Company is crucial. Do not let them talk you into changing your mind if you know it will not work for you (unless there really is no way to successfully do what you wanted).

The person who I am in contact with has stated they are willing to discuss with my trustee for them to "fail" the Trust Deed so I can set up a Debt Management Plan (or DAS). Is this this process that some of you described where he writes to my creditors saying he is terminating the Trust Deed and seeking his discharge?

Again, thank you all for your help! It does not seem that anyone from this company would have offered to do this for me until I had stated I found out it was possible to get out of the Trust Deed without going bankrupt.

Thanks everyone! (And sorry for the long posts!)

No problem at all.

Yes, "failing" the Trust Deed is likely to be the same process previously mentioned.