Hi Mark,

This is interesting reading.

Does this mean that a creditor can issue an ÔÇ£InhibitionÔÇØ to someone in a TD despite an agreement being put in place to deal with the debt under Scottish law which they agree to. Ultimately once the TD is dealt with and creditors paid (form 5 issued) you should be fully discharged from my understanding from the debt and able to build your credit again. But it they have placed an ÔÇ£inhibitionÔÇØ against you they can still then seek to claim the additional funds to clear the debt based on their terms only.

That seems, if it is the case, to be a very dangerous loop hole to the person trying to resolve their debts via a TD.

The reason I'm asking in detail is that part of our debt is with HSBC who also hold our mortgage. Because there is a link there this would surely mean we are prime targets for an ÔÇ£inhibitionÔÇØ record to be entered.

Or have I miss understood this all together.

As I am entered into a TD then part of this process is placing an ÔÇ£inhibitionÔÇØ against me preventing the sale of the house without the Trustee's permission. This is done by the Trustee but Im assuming the creditors can in theory also do this.

Once the debt is realised and paid at the end of the required time I have the Inhibition lifted (as part of the form 5 process) allowing me to, if we wanted to, sell our house etc.?

Hi Mark and the other experts.

In addition to colski's questions, I wonder if you can answer one that I think many future visitors to the forum that are reading this thread might have...

If an individual already has an inhibition what are the consequences for them if they were to go ahead with a protected trust deed, sequestration or the debt arrangement scheme afterwards?

Hi Both

It Trust Deeds, the Trustee will normally send Form 13 which is the Trustee's notice of inhibition. He would then send Form 14 discharging the inhibition at the end when issuing Form 3. (All these forms!!) It's pretty standard stuff.

Once signed the creditors could not proceed with an inhibition notice after the date of signing as it would have no effect.

Ahhh!!! TDA this could get technically messy, but here goes. If there is an inhibition in place then:

TRUST DEED - The inhibition would stand and expires after the period of 5 years from registration. The inhibiting creditor could renew this in theory.

SEQUESTRATION - The inhibition is cut down/ceases to have any effect when sequestration is awarded. The Award acts as a 3 year inhibition. If a Trustee does not renew this before the 3rd anniversary and there is equity to be dealt with then he loses all rights to the property. Sequestration effectively kills any rights the inhibiting creditor may have. The creditor used to get a preference on dividend payments, but not any more.

DAS - I would need to double check, but I don't see anything which would suggest that DAS would stop the inhibition.

It was another point in the DAS scheme which may need to be tightened as there would be nothing to stop someone in a DAS arrangement from selling/remortgaging their home and spending the money!

Mark

Thanks for that Mark.

TDA - Is their a glossary section of the site for reference matrial like this to be entered?

Not at the moment colski, though for many of the "frequently asked questions" that arise here we already have articles written on the site that we can signpost people towards.

If an inhibition is already in place, DAS won't stop it.

If the Debt Payment Programme is in place first, then a creditor can't record an inhibition against you.

Very interested in this subject. I was very naive when I signed my TD and cannot remember if inhibitions were mentioned to me or not. At the time of signing I did not own any assets that would have had been affected by the inhibition but as my previous posts have advised I now own my family home having inherited with no mortgage outstanding.

As my trustee says I am no longer insolvent but I would rather remain in the house an expl

Sorry about that

As i was saying I would rather explore other avenues of repaying my debts in full.

My point is, if my trustee was to force the sale of the house to repay the debts against my wishes they are turning my trust deed that was for unsecured debt into a debt that is now secured against my home in effect. Or am I missing something?

Hi gresgow

The inhibition would only be an issue for property owned at the time its registered. It does not have any effect on future purchases/acquisitions.

Mark

Mark

I imagine though it would affect my home that I now own with no mortgage outstanding?

Dear All / Mark .

Would you care to share my trustee's lack of understanding regarding my property and general lack of care unto me . [B)]

what is the story when a inhibition is registered after sequestration?

The sequestration award acts as an inhibition, so the post sequestration one would have no effect.

Mark