Hi Wendy
Sorry been away,
Ref my IP firm - rather not say - don't want to tempt fate (yet) but she is GOOD. Been in it for just over a year now, so one down two to go. The fees are usually approximate - there 'may' be extra work involved, but hey, if it gets you out of the c*** it's worth every penny. (Although you may well know the following bumph, it might help other Scots reading these forums )The chances of a Scottish Trust Deed being successful is higher than an IVA - maybe it's because the creditors are more likely to get their money within three years instead of five long ones - when a lot can happen (is it 26% of IVA's fail during their term because of difficulties by the debtor?; loss of job and it's said apathy of the debtor living on a pittance for a long 60 months?). Now that you've signed the paperwork, your IP will put together copies for the creditors, a notice will appear in the 'Edinburgh Gazette' (don't panic it's not like the national press or your local paper -the Gazette is the 'Official Journal of Scotland' published twice weekly on Tuesday and Friday) a copy of this notice will also be sent to all your creditors, and also a set of the same to you. Although it says 'Bankruptcy' - it's not but comes under that legislation, like this:
[Trust Deeds
Bankruptcy (Scotland) Act 1985 Section 5, paragraph 5(3)
Trust Deed for Creditors by
'JOE BLOGS'
A Trust Deed has been granted by Joe Blogs, 100 Any Street, Anytown, BB678 9YT, on (date), conveying - to the extent specified in Section 5(4A) of the Bankruptcy (Scotland) Act 1985) (his/her) estate to me, (name and address of IP) as Trustee for the benefit of (his/her) creditors generally.
If a creditor wishes to object to the Trust Deed for the purposes of preventing it becoming a protected Trust Deed (see notes below on the objections required for that purpose) notification of such objection must be delivered in writing to the Trustee within 5 weeks of the date of publication of this notice in The Edinburgh Gazette.
Notes: The Trust Deed will become a protected Trust Deed unless, within the period of 5 weeks of the date of publication of this notice in The Edinburgh Gazette, a majority in number or not less than one third in value of the creditors notify the Trustee in writing that they object to the Trust Deed and do not wish to accede to it.
The effect of this is that paragraphs 6 and 7 of Schedule 5 to the Act will apply to the Trust Deed. Briefly, this has the effect of restricting the rights of non-acceding creditors to do diligence (ie to enforce court decrees for unpaid debts) against the debtor and confers certain protection upon the Trust Deed from being superseded by the sequestration of the debtor’s estate...]
Copies are also sent to the 'Accountant in Bankruptcy' (AIB). You now sit and wait patiently for the five weeks to complete and then you will be notified whether or not the Trust Deed was objected to, the IP hears this via the AIB then tells you. If they have not received objections then your 'Trust Deed' becomes a 'Protected Trust Deed' and the creditors can no longer chase you, interest is frozen and it's 34 and a bit months to go. However (I might be wrong?) but if the trust deed is objected to by over a third in value and fails, you are not 'protected' you still have to abide by the terms/payments set out in the Trust Deed but your creditors are still able to chase you - but this would be quite unusual and I am sure your IP would not propose the Trust Deed if there was any chance of this happening.
Don't know if you have any equity in your house? but the value of the house is taken at the start of the Trust Deed and the equity is worked out at that date, and released by remortgage in the third year, unlike an IVA..
Hope this helps
