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Topic starter
08/07/2013 8:43 pm
Hi folks,
Can you help.
I recently found out that my elderly mum, a widow, has been in a protected trust deed for two years and has another two years to pay.
She currently pays around £150 per month from a monthly income of around £750.
She has no assets or life insurance and lives in a council property.
Her bills for the month - electricity, rent, gas, council tax, food and telephone - are around £550.
She is really struggling to get by on this and I have advised her that she should tell her trustee that she can no longer afford to pay.
Her total debts were around £20, 000.
I really feel that her trustee should have advised her that she would have been better off going bankrupt two years ago.
Any advice?
08/07/2013 8:59 pm
Hi Simon
It's difficult to comment as we don't know exactly what was discussed initially.
One thing I will say is that in my experience, people in their 60's+ rarely opt for sequestration, even though this might be the better choice.
If she is struggling financially, you should discuss sequestration with her and see if this is an option she would consider, then perhaps speak with her trustee.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
08/07/2013 9:11 pm
Hi Mark,
Thanks for your prompt reply.
As far as I am aware, sequestration was never seriously put to her as an option.
She is struggling but is too proud to admit it.
I don't think she can carry on as she has been for another two years.
I just would like to know if sequestration would be better given her current income and outgoings.
08/07/2013 9:29 pm
Hi Simon
It's hard to say without a full review. Firms should discuss all options and see what best suits the individual not the firm doing the work. I note what you say about being proud and as mentioned, that is my experience.
I think if she is struggling to maintain payments as you mention, then the trustee should review matters to see if the trust deed is still viable.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
08/07/2013 9:33 pm
Tkanks for your input - I think I will need to approach the trustee to discuss.
09/07/2013 9:53 am
Hi Simon,
I would support what Mark has said about more mature people not really wanting to consider entering into Sequestration. I find that the older the individual the more that they would like to try and repay.
When advising someone on their available options, a discussion should take place about everything and then the client should pick whichever option they prefer. Sometimes when I've started to explain Sequestration to someone more mature they have tried to stop me and advised that this is not something that they would like to consider and don't need to know anymore about it. A good advisor will be able to deal with these initial fears and still be able to explain the full process. Even after this, the clients can sometimes pick a Trust Deed over Sequestration or a DAS.
You may find that the Trustee or relationship manager might not discuss the case over the phone with you without a signed mandate from your mum. Give them a call and request a meeting with them if you and your mum can manage into their office. Prepare a thorough income and expenditure to take with you to evidence that your mum is financially struggling and take it from there.
David is not currently posting in the Trust-Deed.co.uk forum
