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Scottish Trust Deed Forum
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Topic starter
19/06/2013 5:01 pm
Hi there.
I just recently signed a Trust deed (about 3 weeks ago), it hasn't become protected yet ... there was quite a lot of debt that I had included in the TD, however I just got a call from a creditor that I had actually forgotten about as I hadn't heard from them in years, mainly because I never answered calls from numbers I didn't recognise, but now having the trust deed process started I decided to start answering the calls (Im not even sure how they got my number, as the only address they had for me was from about 6 years ago!).
Anyway ...
The problem with this new creditor is that it actually doubles the amount of debt I have included in the TD. Im obviously going to have to tell my Trustee and see if I can get it included in the TD, but will this amount cause issues with the other creditors? as it means the other creditors that may have already agreed will now need to agree a lesser amount?
Just not sure what to think about this ... debt within the TD was 22k ish, now this is a further 19k to add onto it (can't believe I had forgotten about it).
Any advice on how the trustee might deal with this?
19/06/2013 7:02 pm
If the new debt takes the dividend below the minimum amount, then creditors will object and the trust deed will fail to gain protected status.
Your only option will be to speak with your trustee and see if they can find a solution.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
19/06/2013 7:33 pm
Will the new debt not fall under the statute of limitations? How many years since you heard from them?
19/06/2013 9:23 pm
I think it would be up to the trustee whether prescription applies?
Hopefully one of our experts can confirm this.
It doesn't seem as though there's any denial that the money is owed though.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
19/06/2013 9:28 pm
It depends on what action, if any, has been taken by the creditor ie if decree was ever obtained. However the Trustee will need to make the final decision.
It's an interesting one though!
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
20/06/2013 9:20 am
Yeah, I don't deny the debt ... I don't think it's worth doing that anymore, plead ignorance and hope it goes away, that's not likely to happen and you just end up stressing about it (possibly a word of advice to anyone out there ... even though you haven't heard from them in a while, that's probably because you moved house and are trying to avoid them, chances are they'll have a court decree anyway which you won't know about ('cause your avoiding them)).
I've emailed my trustee this morning to see what they say, im thinking maybe Bankrupcy or extending the length of the TD, but we'll wait and see what they say.
Thanks for your responses.
Topic starter
20/06/2013 1:26 pm
Spoke to the Trustee today and what we'll have to do is extend the TD for a year, so it will be a 48 month duration.
This means that all the current creditors that have been contacted will still receive the same amount (so it doesn't affect them), just have to extend it for a year to cover the new debt.
20/06/2013 1:50 pm
Glad it all worked out. Sometimes it just takes something fairly straightforward to resolve things.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
