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Scottish Trust Deed Forum
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Topic starter
15/10/2021 11:18 pm
Hi there[:D]
I am hoping someone will be able to give me some advice on a trust deed I currently have in place.
I started the trust deed in March 2020. Since then the original company closed and my trust deed was passed to another company in March 2021. My circumstances have changed dramatically since I set the trust deed up. I was living with my mum at the time paying £300 towards rent and bills, I now live on my own so pay around £800. My wages were reduced as I work in car sales so after my probationary period my wages fallped from £1500 basic to £833 after my company car deduction (£170.) this basic salary doesn’t include commission paid but through lockdowns with the showroom closed I was coming out with next to no commission and it was even worse when I was on furlough. My average wage comes out at about £1300 a month, which after bills, food, basic necessities, pet costs (food, pest treatment and vet bills) and fuel I have nothing left. In fact most of the time I have to borrow money from my boyfriend to cover basic costs of food and fuel. I am unable to put any money aside for emergency repairs, replacing white good, hobbies, new clothes, hair dressers, dental work or birthdays etc.
I have been in touch with both my new and old trust deed companies every single month since I moved in January. My trust deed was supposed to be reviewed in March but due to the change over this never happened. I have been completely unable to make payments towards my trust deed since June. I have made several attempts to have my trust deed reviewed and have explained to them on many occasions that I can’t make the payments anymore. Nothing has happened even though they have said they will send me the forms for my review I never get them (yes I have checked multiple times they have my correct address and contact info.) I filed a complaint in August due to the lack of care and my treatment by staff over the phone. My account was put on a payment break until it was resolved. I heard back from them in September to do a review over the phone, after talking them through my incoming and outgoing payments again they said they could see I couldn’t make the payments and put my account on hold until November.
Now November is approaching I haven’t heard from them but still won’t be able to make the minimum payment they want and am no closer to having my trust deed reviewed. I am also starting a new job mid November and becoming a driving instructor. I will be starting a franchise of a well known driving school. I am hoping to be making more money however the first year at least it will take me time to get back on my feet. My worries are that I’m not going to be earning enough to have anything left after my bills and basic needs are paid.
My main questions are is it possible to end the trust deed? If so how does the process of a MAP sequestration work? My debts were £22000 before I started my trust deed but I was told the interest over the period of my trust deed will be added on? Also how would it work if I was a franchise owner?
I have been in touch with stepchange but they can’t help me until my trust deed fails. However I don’t want to leave it to get to that point with out a clear direction in which to head in.
Any suggestions or information in how to deal with all of this would be great. It has been hanging over my head for too long now and causing me a lot of stress. I genuinely feel the trust deed company has been 10x worse than the debt companies themselves.
Thanks in advance,
Jess.
16/10/2021 1:08 pm
Welcome to the trust deed forum Jess4659.
Your trust deed can end early, but only if your trustee consents to this happening. It's a legally binding arrangement between you and your creditors so a trustee would usually only agree to this happening as a last resort.
There is also a scenario where your trust deed could potentially continue without any payment if it isn't now affordable for you. This could still result in you getting discharged from your debts at the end of the process.
If you get discharged early (without being discharged from your debts) you could then potentially enter into a different type of debt solution, such as bankruptcy. You'll need to get advice about this process before you go ahead and one of the things they may need to look at is whether being bankrupt would affect your ability to take on, or to continue running, a franchise. You might also want to take a look at the franchise agreement to see whether there's anything there on this topic.
As frustrating as this has already been for you, I think you're going to have to continue working with your trustee and asking them questions when you get the opportunity. In what circumstances would they discharge you early? In what circumstances could your trust deed continue for the agreed term (without payment if not affordable) but you could still complete the arrangement and get discharged from your debts?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
22/10/2021 1:21 pm
Thank you for your quick response!
Sorry it has taken me a bit to get back to you I never saw that you had replied!
I have read through my franchise agreement and it doesn't say anything regarding bankruptcy do you think this would be worth checking?
My trust deed have said that if my payments are reduced or stopped the term of my trust deed is increased? They haven't actually told me by how long so I'm not sure how it all works, does this seem right?
I am seriously unhappy with the service provided and the lack of care from my trustee, is that anyway I can complain about the company and the handling of my trust deed?
22/10/2021 3:52 pm
Hi Jess4659,
Bankruptcy can be tricky if you're running a business. You'd want to get really good personal advice before going ahead if that became a possibility in the future.
You shouldn't be penalised in terms of a trust deed payment extension if your financial position has changed through no fault of your own. This would certainly seem the case if you lost income as a result of the pandemic. It's less clearcut perhaps if you've chosen to move somewhere new with higher monthly costs, or chosen to move to new work with a lower income. These are judgment calls your trustee would need to make.
Any complaint would need to go to your trustee first. If you're unhappy with their response you could then take the matter to your's trustee's regulatory professional body (they can tell you who this is). The Accountant in Bankruptcy also has a supervisory role in terms of trust deeds.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
