Trust Deed Forum - early settlement trust deed
Trust-Deed.co.uk
Home Home Page








Trust Deed Forum
Trust Deed Forum
Home | Profile | Register | Active Topics | Members | Search | FAQ
Username:
Password:
Save Password
Forgot your Password?

 All Forums
 Trust Deeds
 Scottish Trust Deed Forum
 early settlement trust deed
 New Topic  Reply to Topic
Previous Page | Next Page
Author Previous Topic Topic Next Topic
Page: of 4

expired
Advanced Contributor

58 Posts

Posted - 31 July 2018 :  22:47:02  Show Profile  Reply with Quote
Thanks for your response.

As I pushed for more answers and stated that I have sought advice from other trust deed experts and professional bodies I now got this response.

The Inhibition request for removal is usually done at the same time as the Form 5 but generally you are not notified of the removal as we need to await for confirmation that it has been removed from the register.

The Inhibition should therefore have been removed before the Form 7 is issued.

If you were selling your home the solicitor would do a search and if the Inhibition had not been removed they would contact ourselves and we would re-request the removal.

expired
Go to Top of Page

expired
Advanced Contributor

58 Posts

Posted - 31 July 2018 :  23:09:08  Show Profile  Reply with Quote
why does it take six months to fully discharge when you are paying off the full debt, especially when they have the latest technology and instant banking at their disposal.

expired

Edited by - expired on 31 July 2018 23:09:58
Go to Top of Page

Kevin Mapstone
Trust Deed Expert



3740 Posts

Posted - 01 August 2018 :  07:42:32  Show Profile  Reply with Quote
Whilst I would suggest that 6 months appears excessive in the event the debt is paid in full, there are still a number of administrative processes that require to be completed before the case can be closed.

A number of these steps also require appeal periods to be passed before the Trustee can take the appropriate action. An example of this is that creditors get a 4 week period within which they can object to the adjudication of claims. There is also a 14 day appeal period in relation to the issuing of the Form 6.

These steps were all put in place to act as safeguards for those with an interest in the specific insolvency process and must be completed. Although it is recognised that this is frustrating for those in circumstances such as yourself.





Recommended Partner & Trust Deed Expert - Ask me for help setting up a Scottish Trust Deed    
Go to Top of Page

expired
Advanced Contributor

58 Posts

Posted - 01 August 2018 :  22:22:54  Show Profile  Reply with Quote
Kevin would I be right in saying that by paying the full debt my trustee could possibly remove the inhibition so that i may sell the house so as not to fall behind in mortgage payments. To safeguard this scenario, after said full payment from my lump sum pension, I have three thousand pounds left which should cover 3 months of mortgage payments and the four week or six week period for case closure as houses in my area do sell quite quickly.ps I now have a new trustee as the original one has left the company. my dilemma is that i am volunteering to use almost all of my pension to pay the creditors which under the circumstances if i took the trust deed to full term their payments would be significant less and the fact that i am left with a mortgage hanging over my head, in my situation time is valuable to me to ensure that this lengthy process does not leave me in a vulnerable situation which the outcome may mean losing my home. Basically if it went to the full six months for processing I could not pay my mortgage during that time.

expired

Edited by - expired on 01 August 2018 22:27:26
Go to Top of Page

expired
Advanced Contributor

58 Posts

Posted - 01 August 2018 :  22:31:52  Show Profile  Reply with Quote
I think the processing should be prioritised and a lot quicker especially when a client is paying the full debt. Their is no reason to delay the inhibition.

expired

Edited by - expired on 01 August 2018 22:40:43
Go to Top of Page

expired
Advanced Contributor

58 Posts

Posted - 01 August 2018 :  22:37:30  Show Profile  Reply with Quote
This is an extract from a trust deed website:

After your trust deed is finished, you are discharged from it, as long as you have met the obligations agreed to at the start of the process.

The discharge process should take around a month – if it’s taking longer, contact your insolvency practitioner to ask why.

My question is that if it takes only a month does the inhibition get removed to allow me to sell my home. Once they receive full debt payment,can i check out a website to see if the inhibition has been lifted?

expired

Edited by - expired on 01 August 2018 22:42:47
Go to Top of Page

expired
Advanced Contributor

58 Posts

Posted - 01 August 2018 :  22:44:54  Show Profile  Reply with Quote
Kevin you said "creditors get a 4 week period within which they can object to the adjudication of claims. There is also a 14 day appeal period in relation to the issuing of the Form 6".

Can you elaborate more on what this means in laymans terms?

Why would they object?

What is Discharge on Composition?

Thank you.

expired

Edited by - expired on 01 August 2018 23:21:22
Go to Top of Page

Kevin Mapstone
Trust Deed Expert



3740 Posts

Posted - 02 August 2018 :  08:06:47  Show Profile  Reply with Quote
Apologies expired. I may have misunderstood one of your previous posts. When you asked why it takes six months to fully discharge. I was of the assumption you meant the Trust Deed would be fully completed as opposed to you receiving your discharge in that time.

In the event that you have paid all sums in full there would be no reason for your discharge to take that time. A more realistic timescale for that be 3-4 weeks, to include the discharge of the inhibition and issuing the relevant Form 5.

In terms of checking if the inhibition has been lifted. The Inhibition Register can be checked at a small cost by those with access. If you have appointed a solicitor for the future sale of your house then they can likely check this for you.

Adjudication of claims is the judgement of the Trustee as to what creditors are entitled to receive by way of a dividend from the Trust Deed. Creditors have the right to appeal this judgement.

The Form 6 is the Trustee requesting his discharge and again there is a statutory appeal period which must be passed.

Recommended Partner & Trust Deed Expert - Ask me for help setting up a Scottish Trust Deed    
Go to Top of Page

expired
Advanced Contributor

58 Posts

Posted - 02 August 2018 :  12:34:08  Show Profile  Reply with Quote
Thanks kevin for the info, four more months and my trust deed will be paid in full and looking forward to my trustee being discharged.

expired
Go to Top of Page

expired
Advanced Contributor

58 Posts

Posted - 23 November 2018 :  12:39:30  Show Profile  Reply with Quote
I am now paying early my full payment of loan due to creditors and trustee from lump sum pension this year and keep getting different answers to my question. I asked once I paid full amount would the inhibition be removed so that I could sell my house as I cannot afford to maintain mortgage payments, this is the first response: “The Inhibition request for removal is usually done at the same time as the Form 5 but generally you are not notified of the removal as we need to await for confirmation that it has been removed from the register.
The Inhibition should therefore have been removed before the Form 7 is issued.
If you were selling your home the solicitor would do a search and if the Inhibition had not been removed they would contact ourselves and we would re-request the removal.”

Second response: “Please be aware, even though your Trust Deed will be completed and your Property Equity paid, if you sell your property before the Form 6 is drafted (Trustee discharge papers) then you will be subject to a charge from our solicitors as he would have to be involved. Therefore, I would advise to wait until the Form 6 is drafted before you sell the property”

So I am confused as the first trust deed supervisor never mentioned any fees and it was put simply that my own solicitor involved in selling my home would request said removal of the inhibition?

My scenario is that I want to pay full amount from my lump sum pension and within four weeks put my home up for sale to downsize as I cannot afford to maintain mortgage payments, my mortgage balance is £16000.

expired
Go to Top of Page

TDA (Debt Adviser)
Trust Deed Expert



12962 Posts

Posted - 23 November 2018 :  13:52:15  Show Profile  Reply with Quote
Hi expired.

The removal of an inhibition should be a part of the process of issuing your Form 5.

You can make your own check on the inhibition's status using the Register of Inhibitions (easily found online).

I think you should seek written clarity from your trustee about why their solicitor would be involved, and charge you, if you have been formally discharged and there is no inhibition.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
Go to Top of Page

expired
Advanced Contributor

58 Posts

Posted - 23 November 2018 :  14:27:23  Show Profile  Reply with Quote
They are a bit contradictional as another advisor stated that once they receive all monies from myself the trustee will have no interest in my property or equity? So why the need for a solicitor?

To many chefs kill the broth.

expired

Edited by - expired on 23 November 2018 14:28:47
Go to Top of Page

expired
Advanced Contributor

58 Posts

Posted - 23 November 2018 :  14:35:56  Show Profile  Reply with Quote
Surely when all creditors in question receive all their debts in full with interest from the trustee there would be no counter claim from them, instead it would be an automatic acceptance.

Thanks for your response Amy.

expired

Edited by - expired on 23 November 2018 14:46:54
Go to Top of Page

TDA (Debt Adviser)
Trust Deed Expert



12962 Posts

Posted - 23 November 2018 :  16:13:18  Show Profile  Reply with Quote
Hi expired.

This will come as no comfort, but we've had similar experiences shared here in the forum before.

Some firms seem to draw the line at the issue of Form 5, other firms have even sometimes told people that any equity would go to them if the trustee was not discharged (Form 6).

I guess the solicitors involved in a sale would need to check in with a trustee that has not been discharged to clarify that they have no interest in the sale proceeds. They'd become aware of the trustee when the insolvency checks were done.

It seems some trustees may handle this themselves and no fee would apply. It seems your trustee would involve a solicitor in the process and that you'd be expected to cover the costs.

It's always really difficult to explain here that firms don't always go about things in the same way. It seems unfair. To be honest, it is unfair.

I've little extra to add I'm afraid. One of the other experts may be able to shed some further light and/or ideas on this when they next visit.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
Go to Top of Page

expired
Advanced Contributor

58 Posts

Posted - 23 November 2018 :  16:56:44  Show Profile  Reply with Quote
Thanks Amy I am expecting a call on Monday with my full payment estimate deducted from my lump sum to pay trustee and discuss further the inhibition removal, I was told not to worry it would all be sorted soon. A debt of £23500 which I have paid £4680 over a two year period at £180 a month for their initial fees now totals over £34000?

expired

Edited by - expired on 28 November 2018 00:17:48
Go to Top of Page
Page: of 4 Previous Topic Topic Next Topic  
Previous Page | Next Page
 New Topic  Reply to Topic
Jump To:
Trust Deed Forum © 2008 - 2018 www.trust-deed.co.uk Go To Top Of Page
Snitz Forums 2000

(c) Channel Active Limited. Company Number: 06412452. Data Protection Registration: Z1332750.
Telephone calls may be monitored or recorded. Authorised and regulated by the Financial Conduct Authority.
Trust-Deed.co.uk, Clyde Offices, 2nd Floor, 48 West George Street, Glasgow, G2 1BP. Tel: 0141 2490416.