Hi john black and welcome.

I'm puzzled as well.

Were you given a reason why your debts must increase?

I've hopefully been misinformed that I need a debt of £10,000 to qualify for a protected trust deed!!

Hi john.

Yep! You've been misinformed or misadvised. Telling someone to get into further debt is ludicrous.

If you worked through your income and expenditure with this "adviser" did they suggest a monthly payment that you'd be making?

This is probably too much of a coincidence, but...

I read John's post earlier, and couldn't understand why he had been told that his debt had to be at least 10 grand for a TD to become protected.

But now I've just started reading through the AiB's report on their consultation about bankruptcy law reform. Which tells me that there was "Support for a minimum debt level of £10,000 for entry into a protected trust deed" [:0]

But it's not law yet (unless that's a surprise that's been hidden somewhere in the other 95 pages of the report!)

It sounds like we've had an equally interesting day candlewick!

At least some of the more bizarre proposals/questions seem to have been kicked into the long grass.

quote:

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Originally posted by Trust Deed Assistant

Hi john.

Yep! You've been misinformed or misadvised. Telling someone to get into further debt is ludicrous.

If you worked through your income and expenditure with this "adviser" did they suggest a monthly payment that you'd be making?

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I've not had formal advice as such (yet) and I agree in principle with what you say. I 'phoned the guy at the CAB and he said 'no it's not to get it up to £10,000 it's so your major creditor can't object. I'm now seeing sense in this which takes me back to my original question. Is there anything to stop me doing this and would I get the deed protected?

Thanks.

Who is the major creditor john?

How much is owed to them?

quote:

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Originally posted by Trust Deed Assistant

Who is the major creditor john?

How much is owed to them?

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Council tax - i.m being chased for over £3,000

Under no circumstances should you be advised to take on more debt in order to make a trust deed work, john. Borrowing money with no intention of repaying could be construed as fraudulent activity and your adviser is doing you no favours here.

Have you looked into a DAS as a possible option?

Hi John black,

In our experience council's very rarely object to a Trust Deed proposal. If your main creditor is a council for council tax, I think it's unlikely that they will object to your Trust Deed. The CAB advisor wouldn't tend to know this as they don't propose Trust Deeds to creditors but a good Insolvency advisor will know this.

You have a number of options available from a Trust Deed to a DAS as Kevin suggested and even Sequestration but I would view that as a last resort.

Thanks to last two men. It's not actually the council - they've passed it on to people called Walker Love who've given me a VERY hard time. The funny thing is that the CAB chap DID seem to specifically see £10,000 as some kind of threshold or target to get the deed protection.

Hi John,

A single creditor owed more than a third of your total debts can potentially prevent your trust deed from becoming protected. The fact that they can does not mean that they necessarily will though.

To advise increasing other debts to take this single debt below a third of the (newly increased) total does seem really odd though. Too many risks for you, and risks which are probably not necessary to take anyway.

Thanks again to all. I now understand (I think) what's been going on. Apparently the specific agency which has been recommended to me (they're a city centre W.of Scotland firm) won't take a client on for a protected Trust Deed unless the debt exceeds £10,000. Is this uncommon as it's clear to me now that others do.

Hi again john black.

Trust deed firms are quite within their rights to set criteria about what types of cases they'll choose to take on.

There are certainly firms that will accept cases where the debts are less than £10000, provided that the arrangement makes sense for both the client and the creditors involved.

Other firms may feel that a case with debts below £10000 isn't commercially viable for them to take on.