Hello derang and welcome to the forum.

It's quite common for Scottish Trust Deeds to be set up where it is known that the monthly payment will change during the three years.

Another example might be where someone will complete the payments on a hire purchase vehicle during the three years.

A couple of questions that will help the experts to provide their views on the viability and suitability of Trust Deeds for you both in these circumstances:

How much do you think you would be able to offer each month initially?

How much more might you be able to offer upon your wife's return to work do you think (bearing in mind potential childcare costs etc)?

How much unsecured debt do each of you have?

Are you homeowners (and if so how much equity is there in your home)?

Thanks for the reply,

I think initially we could pay ?ú300 per month until september then we could pay ?ú150 per month while my wife is on maternity pay (for 9 months) then rising again to ?ú300 per month once she has returned to work.

Between us we have approx ?ú30k in unsecured debt.

We are homeowners but based on recent house prices within the area i doubt there will be any equity in our home, maybe ?ú1000 at most.

Thanks derang,

Initial thoughts would be that Scottish Trust Deeds look likely to be a viable option.

What is the breakdown of the debt total for each of you?

Hopefully one of the experts will be able to look at the numbers and confirm their thoughts pretty soon.

Hi Amy,

We both have about 10k each with another 10k shared, does this make a difference?

Hi Derang

it is likely that the Trustee will make the proposal to creditors based on the higher amount of contribution, but set the standing order payment to reflect the change in income as you describe. The period for the Trust Deed will probably need to be extended to account for the reduced payments though.

Mark

Just read that its not possible to have a joint trust deed. How would this work for our case? Would we need to have separate deeds?

Hi Derang

Yes, the Trust Deeds would need to be set up separately.

Mark

This will all be done in a co-ordinated fashion derang. The company setting up the Scottish Trust Deeds will look at your financial affairs as a whole and then establish the monthly contribution amount for each of you (presuming that a Protected Trust Deed seems the right step for each of you to take).

Thanks Mark and Amy. This has helped clarify a few things.

Just realised that about 9k of my wifes debt is with lloyds. Would this rule out a trust deed for her? as that's like 85-90% of her individual debt.

Not necessarily derang. Our experts deal with all of the major lenders on a regular basis. They'll be able to let you know the attitude that Lloyds have taken in the past in similar situations...

Hi Derang

TDA is correct, Lloys are fine if the proposal is within certain criteria.

Mark

Thanks,

I'm also employed by a financial institution (HBOS) and have read on hear about possible issues related to trust deeds and working with finance, but haven't checked my contract of employment yet to see if there is anything specific relating to this.

Have you had any experience with HBOS employees in the past and how were they handled? Would my employer automatically know that i had signed a deed or would they need to be advised?

Apologies for all the questions, just trying to get my head around all the details.

Thanks.

Hi Derang

Best to check your contract. I've dealt with bank employees, policemen, IFA's with no problems, however I always advise to check your contract.

Mark