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Topic starter
19/04/2011 1:22 pm
Hi - I hope someone can help.
My mother has been on a trust deed since mid 2007 (which seems to be a long time having read other posts) but has not made any payments to her trust deed for a couple of years now. The trustee has said they will not give her her discharge and will not sequestrate either as there is no money in the pot - instead they are going to apply for their own discharge.
Where does my mother now stand? Can the trustee do this as I was under the impression that if the trust deed did not complete then the trustee would be obliged to sequestrate.
19/04/2011 1:42 pm
Hi BillyD
An interesting point and probably relies on the wording of the Trust Deed which was signed before the 2008 amendments. These amendments made available the ability for a Trustee to seek his discharge for non co operation, but NOT a change in circumstances.
Was there any change financially or did your mother just stop paying. Certainly in my pre 2008 cases, it was only sequestration I'm afraid for non co operation and inability to pay..
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
19/04/2011 1:55 pm
Thanks for your response Mark.
No there was no real change in my mother's circumstances - she was advised that the trust deed would be far more costly than sequestration and was told that if she stopped making the payments then the trustee would have to sequestrate her.
My limited understanding of the current situation is if the trustee gets his discharge and my mother does not then she will still effectively be on the trust deed and unable to sequestrate herself and will be liable for the debts for the rest of her life as the trust deed will technically not have failed.
19/04/2011 5:44 pm
Hi BillyD.
This is quite technical as the rules/guidance changed during the period.
Hopefully Mark, Kevin or Julie will be able to add some further information soon.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
19/04/2011 5:53 pm
Hi billyd
Prior to 2008, there was not the mechanism for being discharged as you describe unless there was some variation in the standard trust deed. The normal process is after 3 months, the trustee needs to advise creditors and proceed with sequestration.
If the Trustee seeks his discharge by some means, she could petition for sequestration. That said, they will still do an income and expenditure and look for a 3 year contribution.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
19/04/2011 10:16 pm
As Mark says, she may have a contribution to make for 3 years in a sequestration. Given this, it may be worth trying to mend some bridges and pay the final year of the trust deed if affordable?
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
20/04/2011 5:48 am
I switched accounts just before I signed my trust deed, all my Direct Debits transferred to my new account. Then I just went to my online account and cancelled them all in seconds.......
There was no comeback at all apart from the usual missed payments letters but they stopped in the main once advised I was in a POTD.....
So don't worry................
