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Looking for Some Help if Possible on a protexted trust deed

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(@peanut1)
New Member
Joined: 10 months ago
Posts: 1
Topic starter  

I have a few questions if someone could help me or point me in the right direction…

 

How long does it take to set up a protected trust deed?

What happens if one of your debtors rejects the trust deed?

 

What information would i need to provide my trustee? Statements for each debt?

 

I have done a budget form from my charity. Adviser let me know there are limits for each section of expenditure. Does anyone have a rough guide as i dont know what to put down for a good few of the questions.

 

I am up to date with all my payments but before i enter the trust deed would you cancel all payments from account?

 

During the trust deed does my trustee manage my bank statements every month to make sure i am sticking to each specific budget?

 


   
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(@ryank92)
Active Member
Joined: 1 year ago
Posts: 6
 

Hey 🙂

I just thought I'd jump on and share my experience with you as I am in a Protected Trust Deed myself and have been since January!

I actually got the wheels in motion using this very forum back in January and it really was a simple and straight-forward process. I had an initial phone call with Kevin where we spoke about my current situation first and foremost to make sure a Trust Deed was the right solution for me which it was.

I provided all my creditor information as well as up to date balances of what was owed. This was also checked against my credit file just to match up to make sure nothing was missed out in error. 

I then went through an Income and Expenditure form which it sounds like you've already done. It's really important at this stage to be realistic as the point of your Trust Deed is for you to pay what you can reasonably afford. Not being realistic for some of your spending (food, clothing etc) can be easily done and I fell into this category before having a chat with Kevin.

Once this was all completed, my budget was all set, I had paperwork to sign and return and at that point my Trust Deed was sent to my creditors to either accept or reject.  They then had 5 weeks I believe it was to accept or reject the proposal. It wouldn't necessarily matter if 1 of your creditors objected, but what would matter is what % of the debt they have. This is something whoever you contact to manage your Trust Deed would be able to go through with you in more detail than I ever could 🙂

Once you've signed your Trust Deed, you would stop paying your creditors and only begin paying your Trust Deed.

In terms of your bank statements, you'd have an Annual Review (Some review every 6 months too I am sure) just to make sure your income hasn't went up or went down, and that your expenditure is working okay for you too. I'm still in the early stages of mine so I've not had my first review yet.

One thing to keep in mind too is if you bank with someone you owe a debt to, it's recommended you change bank accounts to someone you don't as they could freeze your bank account as part of your Trust Deed.

All in all, I'd definitely recommend speaking with someone first to make sure it's the right solution for you as there are other Debt solutions there too.... I would definitely recommend Kevin from this forum though as that was who I have taken out my Trust Deed with and I have been incredibly supported since it began back in January.

 

Really hope this helps (And also helps anyone else out there who is lurking on the forum too!)


   
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Annmarie Macdonald
(@annmarie-macdonald)
Member Admin
Joined: 1 year ago
Posts: 38
 

@ryank92 Thank you for your feedback I am sure that this will be most helpful to people considering a Trust Deed having someone who is already in the process.

Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 15 years ago
Posts: 4237
 

Welcome to the forum, Peanut1.  Some great info already given.  Just to take your points individually:

 

How long does it take to set up a protected trust deed? - Usually around 6 or 7 weeks

What happens if one of your debtors rejects the trust deed? - It depends whether that creditor has a sufficiently large debt that it would stop the trust Deed becoming protected (ie more than a third of your total). If so then it may be possible to improve the offer somehow in order to get them to change their mind. Otherwise you may have to consider other options instead.

What information would i need to provide my trustee? Statements for each debt? - Possible, a credit search will likely be performed, so much of the debt details can be confirmed on that.

I have done a budget form from my charity. Adviser let me know there are limits for each section of expenditure. Does anyone have a rough guide as i dont know what to put down for a good few of the questions. - I'm afraid we are not allowed to give out details of the guideline figures.  My advice would just be to try and break down what you might spend on a weekly basis and to be realistic - too tight a budget will just store up future problems.

I am up to date with all my payments but before i enter the trust deed would you cancel all payments from account? - Once the Trust Deed is signed then you certainly would.  If unaffordable then it might be wise to cancel the payments even before that point.

During the trust deed does my trustee manage my bank statements every month to make sure i am sticking to each specific budget? - No, they will want to see bank statements on an annual basis, but it is more to check your income and the cost of your main household bills.

Hope that's useful?  We are happy to advise further if you wish, so please don't hesitate to get in touch.

Kevin

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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(@debs30)
Active Member
Joined: 10 months ago
Posts: 6
 

I had a trust deed and paid it off early after selling my house. Trust deed has been discharged but 8ths on still waiting on completion of all debts and breakdown of payments made. To be honest the company are very hard to deal with once you decide to

pay all the debts. It’s very frustrating given the debt amount pd was more than the debt as well

as all the fees pd in full. They did say any surplus would be pd back to me. however I’m still receiving default letters from some companies and thought they would be pd by now. Thank you for ant replies in advance


   
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Annmarie Macdonald
(@annmarie-macdonald)
Member Admin
Joined: 1 year ago
Posts: 38
 

Hi @debts30

Can you give me a bit more information please?

When you say that the Trust Deed has been discharged do you mean you have received your Form 5 as you have made all payments?  When did the Trustee receive the final funds from the sale of the house?

Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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(@debs30)
Active Member
Joined: 10 months ago
Posts: 6
 

@annmarie-macdonald thank you for replying so quickly. No I have not received a form 5 only a letter.  The full amount to cover all debts fees etc were pd on the 31st of October on completion of house sale. They also said the would write to the creditors asking them to wave interest.


   
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Annmarie Macdonald
(@annmarie-macdonald)
Member Admin
Joined: 1 year ago
Posts: 38
 

@debs30 

I would say that is an excessive time to not have heard anything or received your Form 5.  I would advise you to approach your Trustee in the first instance and ask them to provide you with an update of your case as a matter of urgency.  You need to know if the creditors have waved their right to the interest and ask for a copy of any proposed scheme of division which will show you the funds ingathered, fees of the Trustee, outlays of the case and the proposed distribution to creditors.  I would also suggest that you advise them that if you do not receive this within 7 days you will lodge a formal complaint with the appropriate regulatory bodies.

Please let me know how you get on and if I can help any further please do not hesitate to contact me.

 

Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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(@debs30)
Active Member
Joined: 10 months ago
Posts: 6
 

Thank you, that is really helpful I will do that and let you know what happens


   
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(@debs30)
Active Member
Joined: 10 months ago
Posts: 6
 

@annmarie-macdonald sorry to be back so soon. I looked at the letter from the trust deed. It’s says a form 5 has been registered and the TD discharge has been confirmed 24/11/22 and the letter is my confirmation. Form5 is attached. It says that the final distribution of the debtors  estate should be completed on the 01/12/22. So I will email them now asking about the other things in your previously reply. Thanks again


 


   
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Annmarie Macdonald
(@annmarie-macdonald)
Member Admin
Joined: 1 year ago
Posts: 38
 

Thats good the Form 5 has been registered.  Have you looked at the Register of Insolvencies roi.aib.gov.uk to see if the Trustee has been Discharged?  Regardless, I think that you should have had a breakdown of what was distributed to your creditors and if there was any surplus funds available to yourself.

Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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(@debs30)
Active Member
Joined: 10 months ago
Posts: 6
 

Thank you I’ll do that I am still getting default notices from some creditors. I emailed them after  I got your advice so hopefully they will furnish me all the information I need.

thank you


   
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Annmarie Macdonald
(@annmarie-macdonald)
Member Admin
Joined: 1 year ago
Posts: 38
 

@debs30 

You may find it helpful to provide your creditors with a copy of your Form 5 so that they can update the date you received your Discharge.  You should check the default dates of the individual debts to make sure it is at the date your Trust Deed was signed. The three main Credit Reference Agencies are ExperianEquifax and TransUnion.  Once you know the date the Trustee was discharged from your Trust Deed make sure this is also reflected in your credit report.

Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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(@debs30)
Active Member
Joined: 10 months ago
Posts: 6
 

Thank you for all your advice Annmarie. I did email and I got this reply very quickly with an apology regarding the time it has taken. So hopefully closure is imminent. Thanks again.

I do confirm that your creditors have agreed to waive off the interest. All your creditors have received 100p/£. We are now working on the statutory process to discharge your Trustee and inform your creditors. We are making sure that all the fees and disbursement have been taken, with the Trustee. I will then email you a breakdown of the receipt and payment and a breakdown of dividend to the creditors. I will the contact you regarding refunding the remains funds to your account


   
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Annmarie Macdonald
(@annmarie-macdonald)
Member Admin
Joined: 1 year ago
Posts: 38
 

@debs30 That is good news happy to help.

Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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