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Scottish Trust Deed Forum
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Topic starter
26/08/2014 12:47 pm
Hoping for some advice please, was advised by Money Advice service to join a DMP (with a company down south) which lasted 6mths till I discovered it would be about 25yrs till my debts cleared due to their fees and interest fees which they said they could stop but didn't. Stopped that, and was then advised to apply for a protected Trust Deed which I was granted in Aug 2012, (with a company in Manchester) have been paying every month on time without fail even though I have been really struggling lately with the payments, due to income changes, rent increases, reduction in tax credits which I rang and explained and they said I needed to wait till my review. This years expenditure review has revealed, at last, that I am indeed stuggling with the £160 payments to the deed required (my surplus amounts to £20.00pm now) however the company are asking me now if I can pay at least £100pm to keep the deed going. "EM! Naw!"...After many sleepless nights and a hefty weekend of research I am now proposing that my Trustee release me from my Trust Deed and I apply for Bankruptcy via the LILA route. I work part time in a supermarket, receive Child and Working Tax Credits and meet the required criteria during all this and I feel that I should have been advised of this route in the 1st place - why when I was first having problems was I told I can't apply for Bankruptcy while on a TD, why are they still saying I need to stay on a Trust Deed when I obviously can't afford it. I feel cheated with fees from the DMP and now cheated on a Trust Deed - shelling out money I can't afford. Feel totally cheated and feel I have proved that I have been trying to deal with my debts but these guys just seem to be interested in money and to me that should not even be legal - people using these methods are already desperate and stuggling. I understand a need for fees, and thats fine... but I feel to advise to prolong the agony is wrong. But who would listen if one were to complain and to whom? Do you think I am right to try to regain some control of the situation? it's now been 2 1/2 yrs and I don't feel I have made any headway in dealing with my debt problems and yet I have paid out a good few thousand! Do I need my trustee to apply for my bankruptcy via LILA, or do I do this myself? Any advice welcome please!!! Many Thanks.
26/08/2014 1:37 pm
Welcome to the forum Louise.
It's a shame that your circumstances have changed so far into your trust deed to make the agreed payments unaffordable.
I can see why you've been asked if a £100 payment would be manageable to get the trust deed finished. Sometimes people are lucky enough to have family support in such situations to help them finish the arrangement.
Is your trust deed for three years with just six months now left? You mention the trust deed starting in August 2012 which is confusing me slightly given that's now two years ago but you mention being two and a half years in.
Any application for bankruptcy can only happen if your trustee has first released you from the trust deed. Often it will need to be you that makes the application along with paying the application fee.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
26/08/2014 4:57 pm
Hi and thanks for the reply, and sorry to confuse you! My TD is for 4yrs and I am 2yrs into it the other 6mths was when I first tried to solve my problems by entering a DMP. I still have 2yrs for the TD to run but the amount agreed depends on my Working and Child Tax Credits which have now stopped as my son is 16yrs old. I have advised HMRC in June that he is staying on till next year to do highers which would then make me eligible for tax credits but I am awaiting a decision regarding my award which may take a while. Yes, I did wonder if I could reduce the amount and continue, but next year my son will leave school and so therefore I probably would not get Tax Credits so I will have the same problems next year. I just don't know what to do for the best.
26/08/2014 7:17 pm
Hi Louise.
There's only so much you can do at the moment, primarily to liaise with your trustee to ensure they're fully aware that you cannot carry on funding the trust deed at the level they're requesting and that this situation is unlikely to improve.
It's quite likely that they'll agree to release you from the trust deed in that case. This will then open the door to other, possibly more appropriate options, being used thereafter.
This may take a little time however as such a decision is likely to have to be taken by someone fairly senior within the company.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
27/08/2014 2:39 pm
Hi Louise,
I'm sorry to hear of the difficulties you are having with your Trust Deed and the change in your financial situation.
The first thing to do and as TDA has suggested is liaise with our relationship manager/Trustee regarding the reduction in your income and the changes that will take place to your income next year.
If you can't afford to pay the Trust Deed then you can't afford to pay it. You want to avoid struggling to pay the Trust Deed and allowing other bills to increase i.e. rent and council tax arrears.
If it's determined that you cannot financially support a suitable payment to the Trust Deed then your Trustee could take the decision to release you from it which would then allow you to apply under the LILA route.
If you keep on at your relationship manager/Trustee things should get progressed for you.
Let us know how you get on.
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