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21/06/2012 10:28 pm
Hi I am thinking of a PTD and have a couple of questions:
1) Once set up does the amount that you pay go up and down on review? For instance if the cost of living rises and you have more expenditure will the amount you pay go down or if say you have a lower paid job and then get a higher paid (or vice versa) is this reviewed and the amount you pay per month changed?
2) If during the course of the Trust Deed you have to move out of Scotland to England for work, what happens to the Trust Deed as you are no longer a Scottish resident?
Sorry for so many questions but I am at my wits end and dont really know which way to turn.
21/06/2012 10:50 pm
Hi zenchi
The key point is the proposal at the start. If as an example, you say you will make contributions of £250 x 30 = £9k. Then that's what you require to meet. If there's a change, the contribution would go down, but the time period extended to meet the £9k figure.
There is no issue with you moving after signing.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
22/06/2012 2:13 am
They key point Zenchi is whether you are co-operating with your trustee, which is the obligation in a trust deed. If you are not able to meet your obligations because your income has changed or have to reduce it, this is not according to the Accountant in Bankruptcy's office a failure to co operate. Their guidance to trustee's state:
It would not be appropriate to refuse to discharge a debtor because of circumstances beyond their control, such as a change of circumstances which prevents them from continuing to pay contributions, or if an asset realises an amount less than originally estimated by the trustee on Form 3.
So essentially, just because you cannot stick to the proposal at the start, does not mean you should necessarily be denied the benefits of the trust deed and be refused a discharge from your debts. Where a trustee does take this view, that you have failed to co operate and refuses you a discharge, there is a right of appeal to a sheriff.
22/06/2012 2:24 am
Although should point out there is no automatic right of discharge and you must work for it. Co-operation is key.
Your Trust Deed also would not be terminated if you are no longer resident in Scotland, although you must be domiciled here to sign one. There are international rules on the operation of insolvency, too complex to go into here, however, if you do continue making your contributions, you should be okay. Also Trust Deeds require the consent of creditors, so once it is protected your creditors are deemed to have consented. Arguably, therefore, depending on where you move to, they could be said to have been personally barred from taking any further action to recover the debt elsewhere.
