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Scottish Trust Deed Forum
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Topic starter
05/05/2017 5:36 pm
Hi - wonder if someone can clarify how a schedule of inhibition works within a trust deed?
Before I started my Deed, a creditor took out a schedule of inhibition on my flat - am I right in thinking that this meant I couldn't sell the property without them being paid back?
The original schedule of inhibition was dated 2009, and there was a time to pay order involved as I was making regular payments towards the debt. I was looking through some old paperwork to see if I could get a creditor to correct an entry on my credit file earlier, and came across another notice from the Sheriff court about the schedule of inhibition. There seems to have been a second schedule issued in July 2014 (Deed signed in July 2013, and became protected about 6 weeks later). The paper stated that the Sheriff had been instructed to take action as I hadn't maintained the payments. I was paying into the Trust Deed instead, and I'm not sure if they were disbursing anything at the time, or waiting till the end of the deed.
I dont plan to sell my flat as the end is in sight for my trust deed (16 months to go!) but what happens when I am discharged? Does the schedule of inhibition get removed somehow, or do I have to organise that myself?
Thanks!
08/05/2017 9:03 am
Hi JJDecay.
There was a post on this subject around four years ago. I have to say that I'm not 100% sure of the answer here, and the situation might theoretically have changed since.
However, the answer given at the time was that this inhibition would remain in place. They have to be renewed every five years by the creditor, which is apparently what has happened in 2014.
As such, it seems like there's some risk that this inhibition may remain in place after you have been discharged from your trust deed.
Please don't take any action as a result of what I've written here. I'd like to hear from Kevin or David in due course about their understanding of the situation.
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Topic starter
08/05/2017 1:38 pm
hi TDA, thanks for the answer - I'm not worried about having the inhibition on my flat, as I want to keep it (biggest reason for choosing a Trust Deed to sort out my debts was not risking losing my flat). Coming across the paperwork just made me wonder if I needed to add "sort out schedule of inhibition" to my list of things to do when my deeds finished 🙂
10/05/2017 5:10 pm
Hi JJDecay
An inhibition isn't automatically removed by a Protected Trust Deed. it will continue to sit against you on the register until it expires 5 years later.
Assuming you complete your Trust Deed successfully and are therefore discharged from the debt in question, then the creditor involved should not renew the inhibition again as the debt is no longer payable.
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