Hi roverrunner76 and welcome to the forum.

I’m a little confused, have you actually spoken with an advisor from the Insolvency Practitioners office? Also, have you only done things over the telephone instead of meeting a qualified advisor in person rather than a courier coming to your house?

We always try to encourage people to speak directly with a qualified advisor and then if possible meet that advisor to discuss things face to face and then sign the paperwork. That way things like this should be avoidable.

In terms of resolving this there really shouldnt be a problem and the paperwork can be changed. The only impact this could have is because your debt has increased it could mean a slight increase in your monthly payment.

In terms of your situation, have you explored alternative options to a Trust Deed such as a Debt Arrangement Scheme?

When it comes to dealing with your debts it’s always a good idea to take your time, do a little research and ask lots of questions regarding your options, what will happen to any assets you have, any assets you could acquire or any bonuses or overtime you might receive. Different solutions will affect these things differently.

It’s also always a good idea to speak with a couple of advisors from different firms as there can differences on how firms handle your case. When you enter into a Trust Deed it’s a big commitment and you need to be fully aware of the pros and cons and be comfortable with everything. Make sure you have fully reviewed the paperwork and know how any assets you may have will be dealt with. As long as you do that then you should be fine.

Hi David

I spoke to the fully qualified adviser of the company over the phone and was asked If I would prefer a face to face meeting, but I chose the phone approach is my wife and I work different hours and we have a child to look after and it seemed the most convenient option. During the phone phone call, she went through the figures I mentioned in my initial contact via the TrustDeed Scotland website. I was given all the alternatives and the conversation took a good hour or so. I was just expecting to see the ALL the creditors on the paperwork and panicked a bit when two were missing and the courier will be here on Tuesday. To be honest, the more I'm thinking about this, the more I'm thinking that a DAS might be better. What's ultimately making me rush this whole process is the fear of falling behind with my payments as I have not fallen behind yet but took debt advise as I was over relying on credit cards to get by. I also want the situation resolved ASAP so I can carry on with my life and I'm sure that this situation will delay things. The 5 week wait for creditor approval will be long enough !

Hi Roverrunner76,

Can you tell me a little more about your circumstances to see if a DAS would be an option? How much debt do you have and how much can you pay per month?

It also takes time to set up a DAS so don’t focus on how long it takes for a plan to be set up and approved. A good knowledgable advisor with experience will be able to tell you the likelihood of your Trust Deed being accepted which will help to put your mind at ease.

My understanding with Trust Deed Scotland is that you may not sign your Trust Deed with them but someone else. Whilst there isn’t an issue you need to be sure that whatever the first advisor has explained to you is actually how it will work with the company you actually sign the Trust Deed with and confirmed in the paperwork.

Hi David. Debts are 40K approx, costing me around £700 per month in re-payments. The Trust Deed will lower this to £219 (based on current paperwork). Monthly income is £2187 + £85 child benefit. Wife's income is approx £900 per month but she pays childcare per month but I pay mortgage of £955, Car HP £155, Gas / Elec £133, council tax £157. Phone broadband £28, Car insurance £28, Road Tax £0, Diesel £120 per month. Property was purchased 3 years ago for cost of £152 k. Mortgage balance is approx £134 k, current valuation is £159k

Debts are credit cards and personal loans. I can make the monthly payments each month but am left with nothing so have been eating into credit cards

Hi Roverrunner76,

I see you own your property and this has approx £25,000 of equity. Is your property jointly owned?

Has the person you were speaking with organised a chartered surveyor to value your house and have you obtained a settlement figure for your mortgage? This should be done before you sign any paperwork. When it comes to a Trust Deed if you are a homeowner then the equity in your property (if it’s jointly owned then your share) needs to be taken into consideration and a proportion of this paid over.

Also, what is the arrangement regarding your property and how the equity will be dealt with? Within your paperwork you should been sent out a form called “Form 1B - Agreement In Respect is Heritable Property”? This is a statutory form which needs to be signed by both you and the Trustee at the outset and confirms the position with your house and equity.

Property is joint owned and I've been allocated 15k share of equity. An online evaluation was carried out by the company which took just over a week to obtain. The settlement figure is based on the mortgage balance of £134,000 plus approx £4000 early re-payment fees as we are in a 5 year fixed rate (two years to go). It was explained that the TD would be extended by 1 year to cover the costs of equity so would run for 5 years.

Hi,

Thanks for sharing all this information.

How much have they worked out your monthly payment to be? I’m trying to get an idea of how much equity you will pay over. When it comes to a Trust Deed and equity the Accountant in Bankruptcy who oversee the administration of Trust Deeds issued guidance regarding cases about equity and what was expected. If their criteria isn’t met this can cause problems for the Trust Deed.

Can you check the paperwork that you were sent out the “Form 1B - Agreement in Respect or Heritable Property” as this is the statutory legal form to confirm your equity. It’s important to have this and for it to be signed up front.

I’m not meaning to second guess everything but when it comes to a Trust Deed and especially when you involve a house with a fair amount of equity you need to be sure about everything.

Hi. Monthly payments will be £219 for 5 years.
Form 1 B states that £2628 will be paid over the course of Year 5 to relinquish interest in the property.

First thing I would say is you shouldn't feel rushed into signing anything if you don't feel sure or if the paperwork is not accurate. Let the courier or the firm you were speaking to know that you wish to rearrange that appointment if that is the case.

Given the level of debt and how much you can afford, a Trust Deed may well be a viable option for you, but it should only be done if you are happy with everything and understand all of the implications fully.

You shouldn't feel pressured and if you want time to get a second opinion from another insolvency professional then take it, as once a Trust Deed is signed then it is legally binding.