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Scottish Trust Deed Forum
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Topic starter
01/05/2013 1:51 pm
Hi there, long time lurker finally taking the plunge. Found this site very helpful and thanks to all.
I have been in a Trust Deed since December 2011 having raked up unsecured debts of around £45,000. I was advised to apply for a Trust Deed paying £200.00 per month for 3 years. I had property in joint name with my wife who was not in a trust deed and she agreed to sell the property with her receiving 50% of any profit, remainder going to trustees.We lived with our 2 children, 1 working 1 under 16. So far so good.
Then it all started to go wrong. The property wouldn't sell, even with 2 substatial price reductions until February this year, leaving only a small amount of equity(around £1,000.00 I think). The length of time made it impossible to continue to pay my mortgage even with a payment holiday, reduced payments, missed payments etc. (The credit card debt had been mainly due to paying a mortgage we couldn't afford by credit card and burying my head in the sand). The situation wasn't helped when my wife left us over a year ago and did not make any financial contribution to the household other than paying council tax. During this time I was unable to pay for electricity and gas and ran up a substantial bill, £400.00 of which is still outstanding.On top of this BT have sent a debt agency to claim £175.00 for a cancelled internet contract despite being a customer for over 25 years.
I experienced mental health problems last year resulting in me being off work for several months and we have since had to go homeless, eventually obtaining social housing with 3 of us in a small 2 bedroomed accommodation. There is little furniture from our old house, we have no carpets, only bare floorboards, no decoration, no curtains and no storage for clothing.
I economise as much as I can, reducing food spending to a minimum,I've had to scrap my car with no chance of replacement, walk where I can to limit spending on public transport etc. I'm sure some of you get the picture.
Even since moving the situation has not improved not being able to live within the budget. I have to borrow of friends for food at end of month repaying when I get paid leaving me short again each month. I have sold any gold/valuables, sold items on Gumtree/ebay, anything that will go, but still cannot manage.
I'm not sure how trustee would react if I asked for a reduction/break in my monthly payment(not missed any yet, too scared to do so) as there is obviously a considerable shortfall in what they had been expecting from sale of house.
Any advice would be appreciated.
01/05/2013 2:26 pm
Hi Rodney,
You've certainly had a rough time of it, but sound as if you are staying strong despite it all, for which I applaud you.
If you have been a lurker for some time then you probably already know what I am going to say here! The usual mantra - speak to your trustee! I know you are worried about what they will say, but there really is no harm in asking about your options and it doesn't sound like you can realistically continue the way things are at present.
If the trust deed is no longer viable then you may well be better off speaking to your trustee about sequestration instead. Whilst you would be resetting the clock to a 3-year period for contributions again, at least the debts you have incurred since signing the trust deed will be included and maybe the contributions could be set at a more sustainable level.
Alternatively, you may find your trustee to be more understanding than you expect and allow you to continue with your trust deed but on a more manageable basis. One thing you really should clarify is whether they might be looking to extend the trust deed further due to the house situation. We have heard others in a similar position be told that they have to pay for longer to compensate - if this could be true for you too then it may be another reason why sequestration could be a preferable route.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
01/05/2013 2:50 pm
Hi Rodney and welcome to the forum.
I'm surprised with everything you have described that you've been able to maintain your contributions and not miss any to date.
I assume you are going to struggle to maintain your £200 payment for the remaining period of your 3 year Trust Deed. If so, Sequestration may be a more suitable option. As Kevin said this will start your 3 year period for contributions again but they could be set at a much more realistic and affordable amount. This will also take into account any debt that you have incurred since entering into your Trust Deed.
The positive thing is that there is a solution to your situation but the first thing you need to do is speak with your Trustee or relationship manager. They will be able to advise you of your options and you can then decide where to go from there.
David is not currently posting in the Trust-Deed.co.uk forum
Topic starter
01/05/2013 3:02 pm
Thank you, David and Kevin. I'll mull this over. I have nothing to lose really so at the very least should arrange to speak to my trustee, and prepare a budget sheet showing the shortfall with copies of bills outstanding.
01/05/2013 3:55 pm
That's a good starting point with the budget sheet and as you said, you have nothing to lose.
Let us know how you get on and good luck.
David is not currently posting in the Trust-Deed.co.uk forum
