- Thu May 18, 2006 10:10 am
Dotty wrote:Decided to join to ask for some advice.
I have been debating lately whether or not to enter a PTD, I have £45000 unsecured debt with loans and credit cards. I have never defaulted or made any late payments so don't have anyone chasing me for the money but life is just one big struggle with the debt. I manage to pay all my debts every month but it leaves me with nothing after these are all paid and then have to live off a credit card with the balances just going upp all the time.
What do I do?
Is entering a trust deed a good thing?
How long after the TD does it show up on my credit report?
Is there any chance that I apply for a trust deed that it could be refused, if so where do I stand then?
My other worry is I would be looking to move from my flat to a house in about 4 years time, will the fact that I have entered into a trust deed prevent me from changing my mortgage when I am ready to move house?
Entering a Trust Deed can be a good thing-it depends how much spare money you have at the end of the month.Remember it is a form of Voluntary Bankruptcy so your CRF file will be shot.It will usually appear on your Credit file shortly after your Trust Deed notice has appeared in the Edinburgh Gazette. Trust Deeds last for 3 years so if you plan to move in 4 shouldnt be too much of a problem, but remember you will probably be tied to a sub Prime lender for a while (although High Street lenders are moving into sub Prime lending-Northern Rock are and I believe HBOS are as well).
After you sign your Trust Deed, the trustee publishes it in the Edinburgh Gazette. He will then write to your creditors and ask for it to become protected. During this time if you get any letters or telephone calls-refer them to your Trustee.
Your Trust Deed will become protected unless-
More than one half in number
One Third in value of your Creditors object They have 5 weeks to launch their objection.
Usual story is that they are too lazy to reply-English creditors are still not sure what a Trust Deed is.......
So thats ok for you. Once the 5 weeks has passed,it automatically becomes protected, which means that creditors cannot take enforcement action against you.
Being 100% honest, I am not sure what would happen if they say no. I have only ever heard of one case where it didnt become protected and the IP's I use havent heard of anyone where the whole thing went t*ts up either.
However have you looked at other methods of repaying your debts-I always think Trust Deeds are last resorts-though I would say if you want to do one DO IT NOW. Bankruptcy and Diligence Act is coming in in 2007 and we dont know what is happening to Trust Deeds but it will be more difficult to get one protected.
Have a look at this as well
which is the Debt Arrangement Scheme. You are repaying all your debts in full , and it also protects you from Creditor enforcement.
Wher it scores over Trust Deed-and I have just remembered you have a house........
is that under the DAS scheme your house is protected. In a Trust Deed your Trustee will want some of the equity in your house.
Please dont do a thing until you have spoken to a Money Advisor in your area who will discuss your options in full.Please go to a face to face Money Advisor and not Paylink or CCCS.They are great organisations but dont really deal with what is happening in Scotland on the Ground (well they cant as they are mostly in England)
If you dont know who to go to look on this site
Hope this helps-and let us know what you have decided