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Scottish Trust Deed Forum
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Topic starter
01/12/2010 6:20 pm
Hey Experts,
I believe I'm right in saying that as soon as the TD is signed, no more payments to creditors should be made.
Of course, until the thing becomes protected and/or the information filters through to their debt collection departments, creditors continue to call and/or write.
So as they write to me, I'd like to undertake a process of writing back to them with details of the TD.
But I'm wondering about the wording in relation to the fact that I won't be paying.
Legally speaking, is it that I am disallowed from paying due to the TD and that's why they need to contact my trustee.
Or is it true to say that, legally speaking, they could expect me to continue to pay until protected status kicks in.
I know it sounds pedantic but I just want to get it right.
Maybe someone has a template letter that I could copy (he said hopefully).
Cheers,
DebtFreeWannabee
01/12/2010 6:30 pm
Hello DebtFreeWannabee.
It's great that you want to be proactive about this. However I'd suggest that you simply pass the letters to your trust deed company to deal with. After all, you are paying them for their assistance in this matter.
The practical reality is that your creditors are likely to ask for payments for a while, and that your trust deed company will almost certainly advise you not to make any.
Sometimes the contact points at the creditors which are used by trust deed companies are actually external to the original lender. Most use external "agents" to handle trust deed proposals which are put forward to them. This can lead to delays between your trust deed company sending the required information out regarding your case, and the debt collection departments of the actual lenders themselves becoming aware of your trust deed.
To reassure yourself you may wish to call your trust deed contact and double check what they would like you to do about any letters you receive before the anticipated protection date.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
01/12/2010 6:49 pm
quote:
However I'd suggest that you simply pass the letters to your trust deed company to deal with. After all, you are paying them for their assistance in this matter.
As usual, the voice of reason in a sea of madness!
Thank you TDA.
Cheers,
DebtFreeWannabee
01/12/2010 7:00 pm
That's very kind of you DebtFreeWannabee.
I very much like the sound of "the voice of reason in a sea of madness".
Going to have a think about using it as my new forum signature!!
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
02/12/2010 6:39 pm
Trust deed assistant is right of course, but just to try and answer your query about the legalities of it all...
Your creditors are entitled to seek payment from you up until the point that the trust deed becomes protected, so it follows that there is nothing illegal in making a payment to them if you so wish.
Essentially though, when you sign a trust deed you are agreeing that any spare income and assets you have during the term of your trust deed should be divided equally between your creditors on a pro-rata basis, so your trustee has the right on protection to challenge (and get reversed) any such transactions if they prejudice the position of other creditors. In reality, this would only be done if the transaction was sufficiently large to warrant it.
Hope this makes sense!
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
Topic starter
02/12/2010 9:19 pm
Thanks for explaining Kevin.
It does seem a bit strange that your damned if you do and also if you don't.
That said, I don't plan on worrying about it and will just send any correspondence to my IP to deal with as TDA suggested.
Cheers,
DebtFreeWannabee
