Scottish and English debt laws are different, so if you are a Scottish resident and have questions on debt, then this is the place to post.

Moderators: TalbotWoods, JaneClack

By gill501
#28095 Entered into a Trust Deed in Sep 2002, paid the agreed £200 a month right up until July 2004 when my son was diagnosed with a terminally ill cancer and I had to stop work. Wrote to the insolvency practionor who told me to put the details in writing and cancel my direct debit and to let them know when my circumstances changed and could earn money again.
I went back to work mid June 2005, but my stepmum said since trust deed is up Sep 2005, just don't bother writing to say back to work and start up payments again because the 3 years was just about up. My stepmum is high up in Royal Bank of Scotland and said there is nothing they can do after 3 years and it doesn't matter that I did not make all the payments.
Anyway it's obviously now Nov 2005 and I have not heard anything at all about Trust Deed from insolvency firm or anyone. My stepmum said I should have got a discharge certificate soon after Sep. What does everyone think?
I'm starting to get worried that something had gone wrong. I really don't wan't to start paying £200 a month again as i'm moving in with my boyfriend and will need the money to pay my half of the mortgage. Any opinions would be appreciated, thanks.
By JLP
#28153
gill501 wrote:Entered into a Trust Deed in Sep 2002, paid the agreed £200 a month right up until July 2004 when my son was diagnosed with a terminally ill cancer and I had to stop work. Wrote to the insolvency practionor who told me to put the details in writing and cancel my direct debit and to let them know when my circumstances changed and could earn money again.
I went back to work mid June 2005, but my stepmum said since trust deed is up Sep 2005, just don't bother writing to say back to work and start up payments again because the 3 years was just about up. My stepmum is high up in Royal Bank of Scotland and said there is nothing they can do after 3 years and it doesn't matter that I did not make all the payments.
Anyway it's obviously now Nov 2005 and I have not heard anything at all about Trust Deed from insolvency firm or anyone. My stepmum said I should have got a discharge certificate soon after Sep. What does everyone think?
I'm starting to get worried that something had gone wrong. I really don't wan't to start paying £200 a month again as i'm moving in with my boyfriend and will need the money to pay my half of the mortgage. Any opinions would be appreciated, thanks.


IMO your stepmum is wrong-completely wrong! Just because she is high up in RBS does not mean to say that she knows about Trust Deeds.Hell I worked for creditors as well and certainly didnt see myself as an expert.I have had training in Trust Deeds and I certainly dont know it all.

Your Trust Deed will last for 3 years, but you have not made all the required payments. By this reckoning it means that anyone can make one payment into a Trust Deed and then be absolved from their responsibilities.Not true Im afraid.I dont mean to alarm you ,but this is serious and I suggest you get onto your Trustee as soon as possible. It is unlikely that you will be discharged until you have made the payments that you LEGALLY agreed to.

I realise the circs so thats why they have cut you a bit of slack, but you MUST tell them of your new circumstances. I am sure they wont give you a hard time for not contacting them earlier BUT if you do NOT contact them and they find out you have been working and not making your payments, your Trustee can take you to court and has the right to file for your Bankruptcy. All they have done is suspend your payments-you are not discharged from your Trust Deed.

Not the answer you wanted to hear I'm afraid.
By gill501
#29629 I thought I would post and let you know that I had sorted out my trust deed problems as decribed in the post above.

I wrote to my IP telling them that I was back to work and did I need to start paying even though the 3 years was up in September. I previously had conflicting advice about what would happen, ie the trust deed ends after the 3 years regardless of how many payments or I continue to pay until I have made 36 monthly payments. So i thought I would write to tell the IP my situation had changed and to face up to the consequences.

Anyway the outcome came in a letter from IP yesterday:

"I confirm because of your circumstances which was fully explained to your creditors I brought the Trust Deed to a close and a Final Meeting of Creditors was held on 9 September 2005.

Consequently you are under no obligation whatsoever to make any payments from earnings henceforth and indeed as I am not in office I cannot even accept them.

Rest assured all matters have been handled correctly and I confirm again that the Trust Deed is concluded."

Well that is such a big weight and stress off my mind. I want to thank all at this forum, you have all been a big help to me, giving me advice and assuring me that i'm not alone with all this. Thanks guys. Yay! )
By JLP
#29920
gill501 wrote:I thought I would post and let you know that I had sorted out my trust deed problems as decribed in the post above.

I wrote to my IP telling them that I was back to work and did I need to start paying even though the 3 years was up in September. I previously had conflicting advice about what would happen, ie the trust deed ends after the 3 years regardless of how many payments or I continue to pay until I have made 36 monthly payments. So i thought I would write to tell the IP my situation had changed and to face up to the consequences.

Anyway the outcome came in a letter from IP yesterday:

"I confirm because of your circumstances which was fully explained to your creditors I brought the Trust Deed to a close and a Final Meeting of Creditors was held on 9 September 2005.


Cool, you were lucky then.Some IP's are not so generous......... :D .Some would have held you to the 36 payments.

Consequently you are under no obligation whatsoever to make any payments from earnings henceforth and indeed as I am not in office I cannot even accept them.

Rest assured all matters have been handled correctly and I confirm again that the Trust Deed is concluded."

Well that is such a big weight and stress off my mind. I want to thank all at this forum, you have all been a big help to me, giving me advice and assuring me that i'm not alone with all this. Thanks guys. Yay! )