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laguna_1
Contributor
9 Posts |
 Posted - 31 January 2010 : 15:10:54
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Hello All,
Got to say this site seems really good and full of information.
I am coming here looking for advice, primarily whether i shouldgo for a trust deed or not.
I unfortuntely have amassed roughly 37k worth of debt.
i went on a dmp with cccs paying 300 a month in oct 2008. i kept this up for a year, however unfortunately i became ill and was signed off sick by the doctor. my employer only paid me ssp, so due to that i havnt paid my dmp since oct.
I am now back at work and need to try and get myself sorted, i m behind with payments on all my creditors, most likely defaultd on most of them...no ccj's or things like that yet.
I am looking to enter into a trust deed, interestingly the cccs plan i had hasnt made any dent into my overall debt due to interest. I still owe around 37kish even though i was paying 300 a month for over a year.
Unfortunately i am in a new job with a pay cut,as my previosu job was so full of stres sit it made me ill. So i think realiticaally an amount of 250-300 is the most i can afford. Is this a realistic amount, or would i neeed more for it to become protectd.
I do work in finance and currently doin my acca exams. It turns out that a trust deed is ok with them however bankruptcy is not, so im really worried about the deed not becoming protected and being forced into bankruptcy as this would cause me major issues in the long run.
In terms of overall debt, its around 10k to virgin (2 cc's), 10k to egg(1 loan and 1 CC). the rest are 2 overdrafts, and a few other credit cards. Its 11 creditors in total, but the 4 mentioned being the big ones.
WOuld my offer of payment be too low or is their a chance of it becoming protected.
I phoned trust deed scotland who mentioned a figure of 260 a month, but not sure how they work as there not the IP
Will this go to my favour as at least a trust deed will see them get a dividend in the end
Quite interested to hear from kevin and mark as i know both you deal in this area and your advice has been spot on so far from what ive read
i know a trust deed makes sense for me, i have no assets, apat from a £300 car, and all my debts are unsecured.
I was looking at the whole full and final settlement optin, but that isnt possible for me as i dont have a 10k+ lump sum from the start....
further my credit is shot already, so staying in a dmp will just keep me in the red for 10+ years,
any advice would be really appreciated, keen to get something moving on this as soon as possible. |
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Trust Deed Assistant
Trust Deed Expert
963 Posts |
Posted - 01 February 2010 : 09:13:20
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Good morning laguna_1,
I'm sure one of the experts will share their views very soon.
From the facts that you have described I'm curious as to why CCCS would have suggested a debt management plan. Was a Trust Deed mentioned as an alternative? |
Scottish Trust Deed Forum Web-Facilitator.
To get personal advice on Scottish Trust Deeds please add your question to this forum, call 0800 0437201, or complete the "Contact Us" form available on the left-hand menu. |
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Kevin Mapstone
Trust Deed Expert
414 Posts |
Posted - 01 February 2010 : 11:10:16
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Hi laguna_1
Sounds like you already have a very good grasp of the options open to you and their suitability. You are right, a trust deed would appear to be a good option, as long as you are confident that it won't cause you too many problems in your career/qualification.
The monthly contribution payment that you can afford should be about enough to gain protection - though there are of course no guarantees I'm afraid! If there are sufficient objections to cause the trust deed to fail, and especially given the problems sequestration would cause you, then we would normally seek to negotiate on your behalf (eg offer to stretch Trust deed over slightly longer time period in order to give creditors a better return).
All in all, I would be very surprised if you could not successfully get your trust deed protected, though as I said there are no guarantees. |
To have me prepare a Scottish Trust Deed for you please click here: http://www.trust-deed.co.uk/contact_kevin_mapstone.php |
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Mark McFadyen
Trust Deed Expert
620 Posts |
Posted - 01 February 2010 : 12:05:01
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Hi laguna_1
Kevin is correct, the information would suggest it should go through ok. I am surprised that CCCS did not mention the Trust Deed as an option. A 10 year plan is a difficult one to complete, especially if the interest is not frozen on one or more of the debts.
Full and final settlements are a great idea as you suggest, but in practice it is difficult to get all creditors to agree and of course there is the problem of having the lump sum!
I hope it all goes well and keep us posted.
Mark |
To have me prepare a Scottish Trust Deed for you please click here:
http://www.trust-deed.co.uk/contact_mark_mcfadyen.php |
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laguna_1
Contributor
9 Posts |
Posted - 01 February 2010 : 18:46:27
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thx for the advice folks
the cccs did mention a trust deed however at that time i was hesitant as at that point i thought a trust deed would mean i could never work in finance again.
After a chat with my instituion, it seems although the bigger companies may shy away smaller companies tend to be ok, and also the acca will still allow membership as long as you are up front with them.
however bankruptcy would cause much bigger issues, hence my worries.
However even if i need to up the term, that would be ok.
Currently i think my creditors would be quite happy with a deed. considering since, since the last 2 years, ive only paid thru a dmp for one year and the rest of the time not been in a position to pay anything.
also i think a lot of my debt has been sold on...eg mbna now to first credit.
Does this mean it would be first credit that will decide on whether to say yes or no to it.
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laguna_1
Contributor
9 Posts |
Posted - 01 February 2010 : 18:55:35
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as the debts that are sold on, tend to be sold for quite a low value, in your experience, do these debts tend to have better chance of protection.
as ive read, it does seem most get protected. All my debts are very old, none taken out in the last 2 years minimum, some taken out back in 2002-2004 etc. so hopefully they will realise whats happened and wont say no to it for the sake of it.
ALso when does the 5 week date start from when they can come back and say no.
Is it from when it appears in the gazette, sorry for all the questions. |
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Trust Deed Assistant
Trust Deed Expert
963 Posts |
Posted - 01 February 2010 : 19:13:40
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Hello laguna_1,
Most Trust Deeds do go on to become Protected Trust Deeds though success rates vary from firm to firm. This rate is one of the key factors that we look at when considering allowing a firm to join the panel of experts answering questions in this forum.
We haven't moved the information over to this site yet but if you visit www.protected-trust-deed.net (our sister site) you will find interviews with the experts where they touch upon the sort of success rates that their firms experience.
If you are happy with the Trust Deed documentation you will sign it and the firm will seek to advertise it in the Edinburgh Gazette. It should appear within a couple of days and the five week period begins.
If a debt has been sold it will be the purchaser of the debt who can decide to accept or object to it. As they are likely to have paid a relatively low amount for the debt a Trust Deed is likely to offer the opportunity of a decent return on their investment which may well make it attractive to them. |
Scottish Trust Deed Forum Web-Facilitator.
To get personal advice on Scottish Trust Deeds please add your question to this forum, call 0800 0437201, or complete the "Contact Us" form available on the left-hand menu. |
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laguna_1
Contributor
9 Posts |
Posted - 01 February 2010 : 22:28:14
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fantastic and cheers for replying so late in the day for you.
how long does the trust deed stay in the register of insolvencies for, is that in it for good as opposed to the six years in the credit reports.
ps just checking your sister site now, never realised that existed so some more interesting reading for me :) |
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Trust Deed Assistant
Trust Deed Expert
963 Posts |
Posted - 01 February 2010 : 22:33:46
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Hi laguna_1,
I might be wrong but I think that registers of insolvencies are a permanent record. Hopefully someone can confirm this to be true (or point out my error!).
You are correct in stating that it will remain visible on a credit file for six years.
The other site I mentioned broadly contains the same content as this though it has been more recently updated. |
Scottish Trust Deed Forum Web-Facilitator.
To get personal advice on Scottish Trust Deeds please add your question to this forum, call 0800 0437201, or complete the "Contact Us" form available on the left-hand menu. |
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Kevin Mapstone
Trust Deed Expert
414 Posts |
Posted - 01 February 2010 : 23:13:19
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| I think it is a permanent record, laguna_1, but this register wouldn't normally be checked when applying for credit so shouldn't cause you any practical difficulties. |
To have me prepare a Scottish Trust Deed for you please click here: http://www.trust-deed.co.uk/contact_kevin_mapstone.php |
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Trust Deed
