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Scottish Trust Deed Forum
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Topic starter
10/10/2011 11:59 am
Can i ask if anyone knows what happens to a debt inc in a TD that is cleared before the end of the TD- i ask as im signing a TD which inc mainly joint debt- my ex does not want to go down this route and is insisting on continuing to pay some of these debts- there are some which are relatively small now and he will likely clear over the next few months- do these drop off my TD or would they still seek payment because they agreed to the TD and have an expected dividend and if they are not liable for payment how do i know they wont be given money at the end of TD which they are no longer liable for- hope that makes sense- J
10/10/2011 12:14 pm
Joni,
I am very glad you're asking these questions. I also have some decisions to make regarding joint finances and how to go forward with the priority being to limit my OH's difficulty as a result. If I hadn't asked a lot on here already, (after consulting with an adviser and an IP !) I would still be thinking it was necessary to become bankrupt together. Now I know it is not only unnecessary but not possible as each of us will have to act individually.
I recently switched from a joint account to 2 individual accounts. Debts are a mix of joint and individual.
Experts - please advise if I become bankrupt, does my OH have the option to pay his half of jt debts or is it correct that he will be deemed liable for it all?
10/10/2011 12:18 pm
Hi Joni.
I don't know if there is a formal answer to how this process works (I'm sure the experts will step in if there is one) but I'd think that the debt would simply be left our of any dividends paid if it has already been repaid in full by the other party.
I'd suggest that if any debts are fully repaid before the end of the trust deed that you let your firm know. This will result in other creditors getting a slightly higher dividend than expected if all other things are equal.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
10/10/2011 12:20 pm
Hello Pamjo.
Joint debts like these make each of you fully responsible for payment.
If one party disappears, passes away, signs a trust deed or becomes bankrupt, the other party will remain fully responsible for the whole balance.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
