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Topic starter
05/10/2012 9:33 pm
Hi,
I have a friend whos circumstances have changed since she entered into a Debt Payment plan (8 years remaining). At the time, she was a joint home owner, owned a car etc, however there has been a breakdown of her marriage resulting in the join home being repossessed and she no longer has any assets.
Now, following a period of homelessness and being accommodated by the Local Authority, she has secured her own tenancy but no assets.
Im thinking this Payment Plan is no longer suited to her circumstances and that a Trust Deed is more appropriate given these new circumstances which are unlikely to change/improve.
Can anyone advise if there is a mechanism for transferring from a Payment plan to Trust Deed?
05/10/2012 9:58 pm
I did something similar, when the Debt Management Company I was with got very awkward, due to a reduction in family income (wife was made redundant). I had no assets, so I didn't have a house/mortgage to worry about.
Basically I cancelled the Debt Management Plan and found myself a Trust Deed Provider. It all went smoothly - no hassles from either the debt management company nor my creditors. My only hassle was with the bank I had an account with (not linked to either my DMP or TD) who froze my bank account without telling me - and it occurred over Xmas too. But that is another story...
With hindsight I wish I had looked at a TD at the beginning, rather than the hassles of a Debt Management Plan.
05/10/2012 10:25 pm
Hi cake boy ( great name)
The DMP is not a legally binding arrangement, so there should be no issue looking at and changing to any other option.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
06/10/2012 12:01 am
Even if your friend is in a DAS, she can still sign a trust deed. If the TD gets protected, the DAS ends. Simples (to coin a phrase [:I])
Topic starter
06/10/2012 8:29 pm
Thanks for the replies.
Its interesting the Debt Management Plan has no legislation as such supporting it.
It looks like a TD is best for her in the short term and long term.
Thanks again, I will pass this information onto her.
06/10/2012 10:43 pm
Cakeboy tell ur friend to be careful when choosing who they take out there TD with, some of the larger companies with charge a limb , if ur friend ever comes into any money, try & get her to ask for fee prices in writing, even if they don't expect to have any money coming to them. I have found this out to my cost
07/10/2012 10:06 am
with no assets is there any reason bankruptcy(sequestration),isnt being considered?
Paul
Trust deed completed Jan 2012,Trustee discharge Nov 2012.
A new dawn.
07/10/2012 11:03 am
I agree with Paul. If there are no assets involved sequestration MAY be a better solution. What is her ability to make contributions?
pb
07/10/2012 7:29 pm
Good thoughts here. Sequestration may well be a valid option.
Cake Boy... when your friend is ready I'd suggest they work through their circumstances with a suitably qualified adviser. That way all of the available options can be identified and considered.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
13/10/2012 11:51 am
quote:
Originally posted by Poorboy
I agree with Paul. If there are no assets involved sequestration MAY be a better solution. What is her ability to make contributions?pb
She works part time so her income is low. I think she pays £80 per month towards the payment plan which she want to leave.
Topic starter
13/10/2012 11:55 am
Thanks again for your input.[:)]
There is no particular reason why sequestration has not been considered. I would think an adviser would give her better guidance on this than I can so sequestration is an option.
I should be speaking to the tomorrow so I will pass on the information you guys and gals have provided. [:)]
