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Scottish Trust Deed Forum
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Topic starter
10/09/2012 10:31 am
Looking at the post regarding changes in the regulation, I find it hard to see the advantages of trust deed over sequetration, as understand it a trust deed has the same effect on the credit rating and is really just a modified sequestration.
It would seem that there are a lot of unscrupulous companies out there that sell trust deeds as a "get out of jail card" without informing the clients about the downside, it seems from the blog that the sums returned to creditors is probabally about 10 to 15 p
So the majority of three years payments goes to the trust deed co.
I know when I first started to look into this some companies were promising the earth, even reccomending taking out more debt before taking a Trust Deed.
Sadly if this sort of selling carries on the valuable services of reputable companies will be legislated out of existence and that will be very much to the detriment of the genuinely needy.
10/09/2012 10:55 am
Hi on track.
For many people there is little difference in terms of the practical implications of signing a trust deed or becoming bankrupt, though that certainly isn't true for everyone.
In terms of the sums returned to creditors from a trust deed, using an average hides much of the real picture. There are cases where no money is returned to creditors, but there are cases where substantial dividends are paid to creditors and even ocasions where they are repaid in full.
It's hard to disagree with your points about the way that trust deeds are sometimes marketed in some places. Only this morning we watched a video on the website of a major insolvency firm that appeared to us to be both seriously inaccurate and deceptive.
There is also however no shortgage of firms that work in a very professional way. By presenting information about each of the options that an individual has (based upon their circumstances) reputable advisers can give their clients the information that they need to make informed decisions for themselves.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
10/09/2012 11:40 am
I have to agree with the comments.
In the last couple of years there has been a marked increase in advertising on TV/Radio etc and the main issue I think is that these calls are handled by call centres who will no doubt be on commissions. If there is a commission, the there can be no impartiality in my experience.
I think the sequestration and trust deed processes are very similar, although there can be areas where one should be preferred over the other.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
10/09/2012 11:44 am
Commissions and bonuses are an interesting subject Mark.
With the FSA and OFT soon to become the FCA it seems likely that any such arrangements will be right under the spotlight.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
