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Scottish Trust Deed Forum
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Topic starter
14/11/2011 6:07 pm
Hello all. I am in a bit of a dilemma and would appreciate some advice.
I moved to Scotland from the Republic of Ireland 3 years ago. I had separated from my wife and entered into a legal separation which required me to pay her a sum of money. In attempting to do so i entered into serious financial difficulties resulting in me entering into a trust deed in Scotland in September 2010.
When i entered the trust deed it was clarified to me by the reputable Scottish company that all of my creditors (in the Republic of Ireland) were bound by the trust deed.
One of my main creditors was ICS (a subsidiary mortgage company of Bank of Ireland) for a property i owned in Ireland. On this property my dad was a guarantor.
My dad passed away in December 2009. The following February (2010) i emailed ICS with my dads death cert asking for his name to be removed from the mortgage account. This was confirmed by ICS by email. All of my dads estate was left to my mother and she has since had everything transferred into her sole name.
During that period, despite my financial difficulties i maintained mortgage payments until summer 2010 when i entered the trust deed, upon which time i ceased mortgage payments on the understanding i would lose the house. I subsequently handed the keys of the property back to ICS. I knew that there would be a large shortfall in the value of the property, hence their inclusion in the trust deed.
On Friday last, my former solicitor in Ireland emailed me explaining that ICS had contacted him stating that they will be seeking payment for any shortfall on the property from my dads estate.
My mother is retiring next month and handled the death of my dad very badly. I dont want to worry her to much and therefore am looking for any advice on the above problem.
Are ICS not bound by my Scottish Trust Deed as advised by my deed holders?
Can they seek payment from my dads estate even if it is now in my mothers name? Will the removal of his name from the mortgage account hold any sway?
Please help - im desperate!
14/11/2011 6:14 pm
Hi scotsirish
I think this is a legal issue and probably depends on the guarantee signed.
Your Trust Deed will cover you for any shortfall following the repossession/sale of the property, however the issue is the guarantee and it may well be that ICS have a claim on your late Father's estate.
My advice would be to obtain a full copy of the guarantee and see exactly whats in the terms and conditions.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
14/11/2011 7:37 pm
Mark
Thanks for that. This evening i contacted the executor of the estate. Potentially some good news in that all of the estate had been in the names of both my parents and therefore there was no need to have a probate on executing the will. They dont believe ICS can expect anything from the estate. Here's hoping....
quote:
Originally posted by Mark McFadyen
Hi scotsirishI think this is a legal issue and probably depends on the guarantee signed.
Your Trust Deed will cover you for any shortfall following the repossession/sale of the property, however the issue is the guarantee and it may well be that ICS have a claim on your late Father's estate.
My advice would be to obtain a full copy of the guarantee and see exactly whats in the terms and conditions.
Mark
14/11/2011 7:48 pm
That does sound positive scotsirish.
I hope everything now proceeds as you hope that it will.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
15/11/2011 1:07 pm
Thanks for that - just waiting on a confirmation call so fingers crossed.
It still baffles me that the banks and even my former solicitor are claiming that they are not bound by the TD due to the juristictional differences!!!!
quote:
Originally posted by Trust Deed Assistant
That does sound positive scotsirish.I hope everything now proceeds as you hope that it will.
15/11/2011 1:47 pm
I can understand why this would be confusing for all of the parties scotsirish.
There are a number of connected issues involved, and such a situation probably isn't one that any of the parties have to deal with very often.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
