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Scottish Trust Deed Forum
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Topic starter
15/06/2011 9:26 pm
My husband and I have been advised to consider taking out a PTD and have a few questions:
1. I am a (unpaid) director of a limited company with charitable status. Would I be able to carry on as a director, and would I have to tell them or Companies House about my Trust Deed?
2. We have a car on hire purchase and the agreement would end within the period of the Trust Deed at which time we have a balloon payment to pay in order to own our car outright. I understand that if we were to pay that, the current monthly payment toward the hire purchase would be expected to go towards the PTD. Does anyone know if, instead of that, we would be able to trade in our old car to buy a replacement car, again on hire purchase, or would the terms of PTD stop us from taking that out? (I assume the latter would be the case!).
3. At the end of the three years following the PTD our credit record would be cleared but would the fact that we essentially have no credit record be held against us by potential lenders, e.g. for mortgage or car hire purchase etc?
4. Finally(!) if we apply for a PTD and it is refused, can we just revert to our current status (we have a low credit score due to the size of our outstanding debt but do not default on any of it) or are we obliged to consider a debt management plan or worse?
Sorry for all the questions, I'm sure they've been asked a hundred times before but I haven't found it easy to find the answers
Thanks for your time
jaxon
15/06/2011 9:50 pm
I have no idea about questions 1 and 2 but would guess that you wouldn't be able to be a director and you wouldn't be able to trade in your old car without the trustee's permission.
However, for question 3, your credit record won't be cleared at the end of the three year term. I think that the Trust Deed stays on the a credit file for 6 years from when you sign. I haven't tried to get credit yet since mine finished recently but I think it might be difficult!
16/06/2011 7:21 am
Hi Jaxon
In answer to your points;
1. There should be no problem carrying on, unless there is something specific in the charity's rules and regs.
2. I think it may be difficult hetting additional hp.
3. The Trust Deed is on your record for 6 years and finance may be easier after that period.
4. No, however any decent ip works with the creditors and should be able to gain their approval.
Hope this helps.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
16/06/2011 2:44 pm
Thanks for your replies, that's a big help.
Regarding point 1, the company's constitution states that a director should vacate office if he/she becomes sequestrated. Does a PTD count a form of sequestration? Sorry for my naivety, I am very new to all of this!
Cheers
16/06/2011 3:11 pm
Hi Jaxon
No, they are completely different. Normally these things say insolvent or reach agreement with creditors.
If it states sequestration, then you'll be fine.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
