Yes they were aware of the fact my income was benefit based i always made sure i stated that as it has always been my only source of income for years as i am not fit enough to work and i also had to provide proof of each of my benefits when i signed the paperwork the day i went into the office. This was also visible on my bank statement when i provided them on day i signed all the paperwork. As the lady asked me to point out where on my bank statement it showed and highlighted it on my bank statement with a marker pen so she could find it easier. I also had to provide my mobility agreement to prove my car was leased from them to me and it states on there about that side of my benefit.
It was early June as it was not long after my father passed away.
I'm now beginning to worry with all the questions that i should never have been placed on this trust deed???

The Accountant in Bankruptcy advised all insolvency practitioners that NO payment should be sought from benefits towards a trust deed or sequestration and furthermore warned that trustees could be required to pay any money back that they have gathered in from someone's benefits.

Hi Reidy1982.

I can only speak for myself, but from what I'm reading I think all of the experts here are sceptical about whether you should be in a trust deed and unsure as to why you were advised to take this route.

The description you received about the consequences of sequestration appears designed to push you away from this option and towards a trust deed. In my humble opinion it's not objective information that you were given.

I appreciate all the information i have been given so far, you have all been wonderfull. My question is in your personal and professional opinions what should i do now then if this is the case? Also is there anywhere i can look at the proper information in regards to sequestration if i was wrongly informed? My next payment will be due to the trust deed the end of january do i continue?. As i will also have to try and scrape together the extra i missed last month which is how i started this topic for advice in the first place.

Hi Reidy1982.

We cannot tell you what to do, but I think if you read over the comments in this thread from Mark, Shona and Kevin again you'll find a few ideas to consider.

We also cannot tell you what private companies will do in response to the situation if you seek bankruptcy/sequestration (which can only happen if your trust deed ends).
However; there are banks that offer bank accounts to persons who are bankrupt, I've not heard that everyone who is up to date with their phone bills would be placed on some kind of deposit scheme, or that everyone gets moved onto deposit key systems for their utility bills if they are up to date.

Houses don't get cleared when people go bankrupt. The Accountant in Bankruptcy have a helpline which should be able to tell you which items would and would not be considered. Our experts here help people with sequestrations sometimes... they may be able to set your mind at rest on this issue as well.

I know of several people who have been taken off special deals with british gas,e-on and n power when insolvency was discovered even though no monies were outstanding to the companies mentioned. However we personally didnt have any issue with them.

Paul

Hi Reidy1982

Looking at all the information provided, i think you should contact your Trustee and advise that you are concerned over the information provided which led you into a Trust Deed and as you are on benefits, you are struggling to maintain payments. On this basis you will be cancelling the standing order. Advise them that you would prefer that they consider with immediate effect that they discharge the Trust Deed or petition for sequestration.

On Kevin's comments, in terms of Social security and Administration Act (Section 187)the law states that and every agreement to assign benefits is void and, on the bankruptcy of a beneficiary, such benefit shall not pass to any trustee or other person acting on behalf of his creditors.

There is some doubt if this applies directly to Trust Deeds although it does state about 'other person acting on behalf of creditors' I know this is one of the areas they are looking to tighten up on and change the legislation to ensure it is clear.

The above does not affect you however and does not take away your rights to end the Trust Deed.

Please keep us posted on how things go.

Regards

Mark

Gosh, this just gets worse and worse. Your house would not be 'cleared.' In fact the Debtor's Scotland Act states items which cannot be removed in Sequestration.The items are also listed on the sequestration application. Your TV is exempt, as are most basic pieces of furtniture. It seems you have been badly advised, and I would talk to the Trustee and ask to be released from the Trust Deed so you can apply for Sequestration. Given the poor advice you have received, I would hope he would be keen to finish the Trust Deed in case you complsined to the Accountant in Bankruptcy or his governng body- The Institute of Chartered Accountants of Scotland.

I called the offices today late on in the day after i read marks reply to speak to someone and was told the person i needed to speak to would call me back when they were avaliable to speak to me in regards to my concerns. I am still waiting for that callback so i will try again first thing tomorrow.
What do i do if they refuse to release me from my trust deed? and if they do release me how do i go about sequestration? Also what happens to the 700+ i allready paid into the trust deed? Will they take that for there fee's? Sorry for all of the questions this is a lot of information to take in and what will happen next. I just want to be prepared for any outcome.
Would it be wise of me to call my electricty, gas and telephone company again explaining the situation to find out what they will do if i am released and go into sequestration i dont want to be left in limbo if it comes to it and problems with all supplies? Also will i speak to my bank manager in regards to my accounts? and attempt to open one somewhere to avoid problems when it comes to my benefits as i can not go without my weekly money if there is delays??? As when i looked on the net in regards to information about bank accounts some say banks can instantly freeze accounts and any monies in them. I dont want to be left with nothing to live on while it is all being sorted out?

Anything paid in already will likely be eaten up in fees. If they wont release you just stop paying it and they will fail it. As for the sequestration paperwork I think one of the insolvency practitioners on here have already offered to raise the forms themselves for you.

I wouldnt be too concerned about the utilities if your accounts are in good order and being paid on time regularly it wont bother them,but its worth checking with your bank to ensure your account would be suitable for bankrupts,as some banks do close accounts.

Paul

As usual, sound advice from plasticdaft.

In terms of the application process for sequestration, once your trust deed is terminated you would just need to fill in the debtor application form which you would get from the Accountant in Bankruptcy's website. There is no need for a certificate from an authorised person as you would meet the LILA criteria. There is a £100 application fee I'm afraid, but that should then be the last payment you would make.

Looks like a pretty positive route forward for you if you decide to go with it Reidy1982. Let us know what you plan and hopefully we can support you throughout.

Paul

Hi Reidy1982

can I ask who you bank with? Some banks are better than others, also taking into account if you are due them any money.

Hi Reidy
Do you have anyone to help with the practical side of keeping track of conversations, paperwork etc?
your story is really horrible, I would have thought anyone neutral would have raised an eye to you being assessed as able to make such payments from benefits. I know the upheaval and sudden withdrawal of services would have been even scarier for you than for most of us. I get the sense that this fear was utilised to lead you into a decision which is hard to justify.

Experts by profession or experience-is there a register we can check for potential advisors' credentials?

I'm not aware of any such register Pamjo. It's important that people look into the skills and qualifications of anyone from whom they seek advice because the unfortunate reality is that there is no mandatory requirement for a debt adviser to hold a professional qualification (even though they have existed for a while).

The following old article might be a useful starting point for people who are at the start of the advice process. 94% of visitors that took our 2010 survey said that debt and trust deed advisers should be professionally qualified:

http://www.trust-deed.co.uk/news/trustdeedsurveyquestionsaboutqualifications.php

The following blog entry from last month sums up our thoughts about training and qualification for debt advisers:

(Blog now removed from website)