Shona Maxwell- Scottish Trust Deeds Interview

Date: Friday 10th June 2011 Location: Offices of Henderson Loggie, Dundee Interviewees:Shona Maxwell & Claire Middlebrook

1. How would you describe your firm as it compares to others?

Although Henderson Loggie is one of the largest Independent firms in Scotland, we pride ourselves on the personal service we provide. We meet with clients face to face and are always available to provide support and advice when needed.

2. What geographical area do you cover?

We have offices in Dundee, Aberdeen, Edinburgh and Glasgow, so we cover the whole of Scotland. I attend meetings with clients throughout Scotland. Each individual’s case is normally administered in the office nearest to them.

3. Who regulates you and how does it protect your clients?

We are regulated by The Institute of Chartered Accountants in Scotland, which means we are regularly inspected to ensure we meet current legislation and best practice. The Accountant in Bankruptcy also has a supervisory role for all Protected Trust Deeds.

4. What actually happens when someone gets in touch with your firm?

We will either have a chat with them on the phone, or communicate by e-mail, just to get the basic information. If a Trust Deed seems an appropriate option, we would then arrange a meeting so we can meet face to face. This is arranged at a suitable time and place for clients – often in the evenings, so they do not need to take time off work. Meetings provide clients with a better understanding and it gives us both the opportunity to go over any concerns or difficult issues.

Meetings are then followed up with a letter. This letter clarifies the issues discussed, particularly how assets such as a house or car are dealt with. The letter also outlines the whole Trust Deed process for them. If the person wishes to go ahead with the Trust Deed, we would meet them again to have the necessary paperwork signed.

5. What are the main concerns of those who contact you?

A client’s main concern is normally their home and/or car. We understand those concerns and endeavour to answer all such issues and questions by going through it in detail with them.

Understandably, clients are concerned if their employers, family or neighbours will find out. This is very unlikely to happen, but there is a public register should someone decide to look at it (though most people don’t even know it exists).

6. The language attached to Protected Trust Deeds can be very confusing. How do you go about ensuring that your clients understand the commitment they are making?

Again, this is why we feel visits and meetings are essential. Some of the terminology in insolvency can be confusing; if you are face to face with someone it’s much easier for all parties to be certain that everything is understood.

The follow- up letter which we provide is also written in simple and clear terms, which helps to further ensure full understanding.

7. How does your firm deal with assets/equity (especially home and car)?

With regards to houses, we have a valuation carried out prior to anybody signing a Trust Deed. This along with the redemption figure, allows us to establish if there is any equity, and if there is, we can discuss with the client how it should be dealt with. We will not usually take into account the first £5,000 of equity, as it is not practical to realise a home for equity of £5,000 or less (due to selling and legal costs).

Since the change in legislation in November 2010, cars have not really been a major problem. Since 15/11/10 cars with a value of £3,000 or less are treated as exempt, as long as there is a reasonable need for the car (for example work transport). If a car is valued at more than this level it is considered on a case by case basis (assuming it’s required for work or other reasonable purposes). In all cases the client is fully aware of what is expected from the outset.

8. In your experience will entering a Protected Trust Deed affect someone professionally?
   

   In the majority of cases it is not a problem. If someone is unsure, then they should check their contract of employment or speak to their HR department.

   Professionals should check with their professional bodies. This is particularly true in legal or accountancy fields. If the individual is in practice, either alone or in partnership, this could affect their status and their ability to continue in that role.

9. Do you charge upfront fees? How are your fees worked out and paid for?

We do not charge upfront fees. Our fees come out of the ingathered funds in the estate and are charged on a time-in-line basis. The fees have to be approved by the creditors.

10. What percentage of the Trust Deeds you put forward become “protected”?

We have very few Trust Deeds which fail to become “protected”. This is because we work in accordance with the criteria that creditors have given us in order to get their approval. If a particular case did not fall within the criteria an alternative option may be more suitable. Again, we go through this at the client meeting.

11. What happens after a Trust Deed becomes protected? What contact will people have with your firm?

All clients are written to advising of the “protected” status. Our employees and Insolvency Practitioners are available to our clients should they wish to contact us. All cases are reviewed on a 6-monthly basis.

12. How do you find being one of Trust-Deed.co.uk Recommended Experts?

We feel it is a great opportunity to provide information to people who need help with their debt problems. The site supplies informative and honest answers which helps and supports people to make informed choices.

Shona regrets that she cannot communicate directly with visitors about existing trust deeds being managed by other companies. If this applies to you, please ask your questions in our Trust Deed Forum where Shona and the other experts will do their best to help you.

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