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25/03/2010 10:50 pm
Hi,
i very nearly signed up to a trust deed last year but didnt go through with it as i just didnt feel i trusted the practitioner quite as much as i should have. I have a few reservations but the big one being if the deed does not become protected does this then mean the only option is sequistration? If the TD has been put in place then it doesnt become protected then i would have missed lots of payments to my creditors that i currently pay every month meaning i would have to find the money to get back on track or become bankrupt-would this be the case?
Also i am the director of a limited company which at present does ok but the practitioner has told me i would need to step down as director for a few weeks untill the TD was set up then reinstate myself, is this the case?
Sorry for the long windedness of the post but i just cant seem to get the right info, everone i speak to has different ideas and opinions which leave me more confused than when started. Also i have a young family so i need to get my problem sorted out but i am relly worried about not getting protected status, making thing worse and losing everything.
Any comments swould be greatly received,
thanks
25/03/2010 11:47 pm
Hi ryanmac, and welcome to the forum.
Sequestration isn't the only option if a trust deed fails to become protected, and for someone like yourself who is director of a ltd co then I can see why you would not wish to go down that route. However, a trust deed is not cancellable even if it fails to achieve protection, so if you did not wish to apply for sequestration then you would have to continue in the trust deed, but unprotected. This means that the creditors who objected to the proposals may not write off the remaining debt due to them at the end of the trust deed period. Also you are not protected from creditors taking legal action against you. Obviously not an ideal scenario.
Having said that, the vast majority of trust deeds do become protected, and the insolvency practitioner you choose should be able to give you a good idea as to whether what you can offer is likely to be acceptable to creditors or not.
In then end it probably comes down to what your alternatives are. Are you likely to be able to repay your debts within a reasonable period outside of a trust deed?
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
26/03/2010 12:11 am
Hi ryanmac,
At the site support team we hear from a lot of people who have received conflicting confusing advice. Sadly there are a lot of untrained and undertrained people who offer themselves as being debt advisors who often create misunderstanding and confusion.
I'm sure that Julie and/or Mark (our other experts from other Trust Deed firms) will confirm Kevin's comments so you can start to feel more confident that you understand the position accurately.
It's good that you have held off pending having found advice that you have reason to trust. Plenty of people in this forum have written about their wish that they had investigated matters a little more deeply about whether to go ahead in the first instance, and subsequently who would handle their affairs with competence and respect.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
26/03/2010 7:55 am
hi,
thankyou on your speedy reply!!!
At present i never miss a payment but the reason for the TD is for a bit of security as in these funancial times we just dont know whats around each corner with regards to our workloads. My business certainly have seen some quieting down of late, and it will nly take one bad month to really have a knock on effect with my finances. I will review my options again and think about speaking to an advisor with regards to my situation and see where we can go forward.
Thanks guys for your help.
