Is the debt irrecoverable?

[steve.f]

Our house in England was reposessed in the early 90s and subsequently we moved to Scotland. We were persued for a shortfall of £35k late in 1999 and took out a Scottish Trust Deed that achieved "Protected" status in March 2000. This was satisfied and wound up early in 2004 with the Building Society receiving and accepting a payment "as a first and final settlement". Later in 2004 and now living again in England, we bought our council house. In Aug 2007, the Building Society has instructed Solicitors to seek repayment of the debt, threatening court action that could result in them snatching our current house.
It is my understanding that a Scottish Protected Trust Deed has the same standing in English law as an IVA - that the debt is not irrecoverable. Is that the case?

[steve.f]

Oops. Typo in the message.

The question is "Is the debt now irrecoverable?"

It certainly is under Scottich law and I believe that it is under English law.

A dividend has been paid in final settlement. In Scotland, this triggers a legal requirement to write off the remaining debt.
If, as I believe, this also applies south of the border,with the Trust Deed treated as an IVA, this means that the debt IS irrecoverable.

Clarification and confirmation would be appreciated.

Regards
Steve

[Adam Davies]

Hi Steve
I think that it is irrecoverable,otherwise whats the point of a Scottish Trust Deed ??
Hopefuly Melanie or Catullus can confirm this as they are both IPs
Regards

Andy Davie
IVA.co.uk Spokesperson

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[mikebdomain]

I'm not sure if a scottish trust deed has the same standing in the English courts when awarded against English land (property)

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[catullus]

Yes it does, but cross border issues before the Enterprise Act were a little more complicated and steve,f should see an experienced insolvency solicitor to knock this one on the head. One letter should do.

[MelanieGiles]

The debt was definately caught by the Trust Deed - but get definitive legal advice from a good Scottish lawyer just to be sure.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
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[steve.f]

Thank you all for your help. You confirm what I (and the Hull CAB) believe.


Regards