Scottish Trust Deeds Help and Advice

A question about : Scottish Trust Deeds Help and Advice

If anyone needs help or advice with Scottish Trust Deeds then feel free to ask.

I'm not an expert but I am currently in a Scottish Trust Deed and may be able to answer questions.

Best answers:

• Hi,
  My parents are considering a trust deed but are scared to go ahead in case they have to sell the house to pay equity that's been built up in the house after the three years is up.
  Is this something that has been explained to you or did you not know about this?
  Thanks.
• Hiya!!
  Yeah, this is a question that i asked whilst I was having my meetings.
  Ok, The company that is dealing with my trust deed is an extremely well established organistation that is recommended by the CCCS and they explained the process to me.
  When your parents enter a Scottish Trust Deed the trustee will appoint a company to come to your parents house to do a valuation. The valuation can also be done before signing the trust deed so that you can see how much equity will need to be found at the end of the trust deed, obviously if there is not a lot of equity in your parents property then this is good for the trust deed purposes. This valuation will then be sent to the trustee. Your parents will need to contact their existing mortgage lender to ask for a mortgage redemption figure in writing so that the trustee can work out what equity is in the house.
  The end figure is the equity thats left over and can be dealt with at the end of the trust deed 3 years, as long as that figure which was agreed at the beggining of the trust deed is paid at the end then the house WILL NOT!!! be revalued and as long as your trustee is statisifed that you have fulfilled your 36 monthly payments you your parents will be discharged in full.
• Hiya kev
  Good to see you again! I hope things work out for you with the trust deed - when will you know if it has become protected?
  You know I'm a trust deed cynic , but I know you looked into it in detail and have obviously made an informed decision about what's best for you. So I wish you all the best with it.
  All this means, of course, that you're well-placed to offer a more positive view of trust deeds - to counteract the more negative mutterings of folks like me
  Looking forward to hearing how it all goes for you
• Hi Coolcait,
  Nice to hear from your again!
  After a long and very though out decision I have opted to go for a Scottish Trust Deed. I had another few telephone conversations with the trustee and also with one of the senior managers at CCCS who were brilliant.
  I've asked as many questions as I possibly can think of and have decided on the Trust Deed as the best course of action to solve my debt problem.
  The trustee have been great, my entry has already appeared in the Edinburgh Gazette and creditors have until 01 December 2008 to object to the trust deed, to be honest they would be daft not to agree to it as if it does not become protected they will not get as much money in return.
  As I said at the beginning i'm no expert but I have had a lot of experience of both Trust Deeds and the Debt Arrangement Scheme, so once again any questions from MSE please feel free to ask.
• Kev1980
  The end figure is the equity thats left over and can be dealt with at the end of the trust deed 3 years, as long as that figure which was agreed at the beggining of the trust deed is paid at the end then the house WILL NOT!!! be revalued
  Where did u rcv this info from? .........and is it in writing?
  
  
  I am a Mortgage Adviser
  You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
• I'm just over a year into my trusteed, and thankfully the house is not in my name, nor the mortgage. Here is a link to the Scottish Government's consultation - it is really useful and easy to understand! https://www.scotland.gov.uk/Publicati.../01/20093732/0 This was the best thing I ever did, my life has changed dramatically taking this.
• Hi,
  i am currently in a trust deed and have been for just over a year now also my partner has a seperate trust deed taken out at the same time. Since entering we now feel it has been the worst move we have made as they would not take all our debt into consideration and now we are struggling to live every month as our income has been reduced recently. Is there light at the end of the tunnel??:confused: Right now we can't see it.
• My partner has a loan running that his mum and dad took out for him so they could not add that into the trust deed also i have a car on finance that had only been running a few months. So we have to pay out the loan Ј200 per month the finance Ј145 plus two trust deeds Ј400 per month. This does not include any household bills, food, clothing. I'm at my wits end as our income has been reduced recently by over Ј500 per month and the trust deed will not change our payments.
• Thanks for the info Roll on 2010
• Although I'm 30 months into my Trust Deed and it's taught me some valuable lessons (I'll avoid credit like the plague in future and I'm very careful with my money now), I'm not sure I'd do it again. I wasn't given any advice about Debt Management Plans, and headed straight into the Trust Deed. It didn't help that only 2 months into the TD my husband (now ex, and also in a TD) was made redundant. Payments were reduced temporarily until we got back on our feet, but by then we'd split up. We were forced to sell our house to release the equity, but luckily I was able to stay on as a tenant through the Communities Scotland scheme. As a result of the reduced payments the length of the TD has been extended but my ex hasn't made any payments for months (while I'm now making my full payments again) but with no news if he is to be sequestered. I think the firm we're with are a bit slip-shod. Frankly, I think my ex has got off lightly!
  In short - with hindsight, I would have tried to negotiate a debt repayment plan first. Make sure you get good advice before you go for a Trust Deed - I didn't go to the right people first.
• Hiya LostBoy
  I agree with kev here. I would also suggest that you try to speak to your local CAB or local authority money advice office too. If they agree that a trust deed is the route for you, then they may be able to recommend an insolvency practitioner locally.
  If your wife goes bankrupt she will - as you say - have to find her share of the equity in your property. If you sign a trust deed, you will also have to find your share of the equity in the property. So you're looking at finding the full equity. Can I ask how much equity is involved, and how likely it is that you will be able to find it all?
  I also have to ask a few questions about some of the things you've said, as I'm not quite following it. New Tomorrow have advised your wife to go straight to bankruptcy, but is she able to do that? If you have property, she can't go on the Low Income Low Asset route. Has she received a charge for payment or stautory demand, or other proof of insolvency? If she hasn't, then I'm not too sure how New Tomorrow expect her to go bankrupt.
  What percentage of her debt exactly is owed to Northern Rock? If it's less than 33.33% (I know, I know - I'm splitting hairs a bit here, but still! ) then she'd be in the same position as you.
  Why do you think that the debt payment plan would ultimately lead to you both being sequestrated? If it's under the Debt Arrangement Scheme (unlikely perhaps, given the length of time it would run - but there is technically no limit on how long it could run for) then you're protected from bankruptcy as long as you keep paying it.
  Finally, you say that your creditors won't wait 8 weeks. Have they already started proceedings against you, or are you referring to their harassment? If you're talking about the harassment - and not anything more formal than that - then I think it would be well worth your while gritting your teeth for a few more weeks, so that you can get further advice on what is best for you to do.
  Sorry to fling so many questions at you, I just want to try to get a clearer picture of what you've been advised.
  Take care