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Nicnac5
Just Joined

2 Posts

Posted - 07 November 2018 :  17:35:43  Show Profile  Reply with Quote
Hi.
Iíll be signing for my trust deed tomorrow.

My financial situation at the moment is dire, I shouldnít have let things get this bad before getting help, and Iíve currently maxed out my overdraft.
My issue is I have some direct debits due to come out before I get paid, and this will take me over my overdraft (unless my bank bounces them, I hope they donít) will the going over my overdraft affect my trust deed?
I have no money to transfer to cover these payments. Some are to my creditors that are in my trust deed others are to items I need such as my bus pass for work etc.

Iím not sure what to do?

Any help or advice would be greatly appreciated

Thanks

TDA (Debt Adviser)
Trust Deed Expert



12644 Posts

Posted - 07 November 2018 :  17:57:51  Show Profile  Reply with Quote
Welcome to the forum Nicnac5.

There could be a bit of an issue here.

If you sign your trust deed tomorrow, only debts that exist as at tomorrow will be included.

So... if your bank does pay out on the direct debits after tomorrow, you could have a debt to that bank which is not covered by your trust deed.

Once you've decided to start a trust deed you'd usually get a new bank account ready and have the essential standing orders and direct debits transferred over. You'd instruct the bank to stop direct debits paying your creditors which will be covered by the trust deed. You'd also have organised for your sources of income to go to the new bank account.

Are you sure that you're ready (in practical terms) to sign the trust deed tomorrow?

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Nicnac5
Just Joined

2 Posts

Posted - 07 November 2018 :  18:32:53  Show Profile  Reply with Quote
I have a separate bank account set up already and am in the process of transferring my direct debits over to the new account, but have no money in there until I get paid at the end of the month.
If I was to sign tomorrow and the payments came out of my overdraft and I paid these payments off when my wage came through would that sort things out? Or complicate things further?
Iím speaking to an advisor about this but just wanted other advice too.

Thanks
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TDA (Debt Adviser)
Trust Deed Expert



12644 Posts

Posted - 07 November 2018 :  20:33:16  Show Profile  Reply with Quote
Thanks Nicnac5.

So essentially this is really a timing issue I guess.

You will not want to make any credit payments once you have signed the trust deed. Those direct debits should be cancelled ASAP.

In terms of being able to pay the other bills before you are paid, I'm afraid that I do think it could cause a level of confusion if your bank allowed those payments to go through. I think you should ask your trustee whether they can help you to sort this out quickly if payments are allowed to go through after the date of the trust deed being signed.

You may also want to think about any possible contingency plan in case essential payments are not allowed to go through.


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np785641d
Regular Contributor

24 Posts

Posted - 08 November 2018 :  10:23:07  Show Profile  Reply with Quote
Im no expert. But the debt figures you have given your trust deed company wont include payments that are due, So i would cancel the direct debits and call the companies involved and tell them that you are entering a trust deed, And that they will be in touch
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