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Scottish Trust Deed Forum
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Topic starter
27/10/2012 10:57 am
Hi,
New to this and am very confused about trust deeds.
I am 22 an have unsecured debts of around 28k
I have a credit card with only a 1k on it which I pay monthly at the moment.
I had a car accident in 2010 when I Lost my licence, the insurance company did not cover me and I lost my car.
There was 2 other passengers in the car with me at the time. My car was a write off and I am currently still paying it just now.
I just received a letter from the insurance company informing me they are seeking reimbursement for a compensation claim resulting from the accident.
This is totalling up to £ 22 k.
I can not afford to pay this back as I am currently struggling at the moment.
My outgoings are not greater than my incoming but it does not leave me with anything at the end of the month.
My problem is I currently put money away to try and save for a house of my own but if I need to repay the 22k I will not get on my feet for at least another 10 years.
Is a trust deed an option and where does it leave my credit rating for trying to get a mortgage.
27/10/2012 12:49 pm
Hi CB90
Is the £22k in addition to the £28k debts?
Even if its not, the choices are to do nothing and I suspect the insurance company will eventually proceed with recovery action or look to deal with the debts. At that level, I think you need to look at a formal option, either DAS which would be the repayment of the full debts over an extended period or Trust Deed which, if accepted will allow for an element of debt write off.
I think your credit rating is going to be affected whatever you decide.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
27/10/2012 12:51 pm
Welcome to the forum CB90.
If you cannot afford to repay your debts now or in the future a trust deed will be one of the potential options.
It will have a serious effect on your credit rating which is likely to make getting a mortgage afterwards more difficult. There are things you can do to mitigate against that but it will take time.
You will also have to pay over any assets that you have to help repay your debts. That would include any money that you had already saved up for a house deposit.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
29/10/2012 11:25 am
Best to talk through your circumstances and look at all available options. A trust deed may well be right for you CB90, but it's impossible to say without more information - in particular what you can afford to pay towards your debts and whether you own any significant assets.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
