The re-opening of Trust Deeds has become a contentious issue in Scotland. Debtors who assumed that, having been discharged from their Trust Deed, no further action would be taken in relation to their insolvency, are now facing the prospect of being on the Register of Insolvencies once again, and losing out on incoming funds.
It’s becoming increasingly common for Trustees to attempt to re-open Scottish Trust Deeds, particularly to collect in funds from PPI claims. If you are in this situation, there may be little you can do to prevent your Trust Deed being re-opened.
This is a very complex area of law, and the question has been asked, does a Trust Deed ever actually close? A lack of clarity in this area adds to the uncertainty.
An increasing number of Scottish residents are appealing against the re-opening of their Trust Deed in court, some representing themselves. There are a number of reasons why you might want to object to your Trustee’s actions, apart from the obvious issue of benefiting from the refunded PPI money.
The practical problems of being on the Register of Insolvencies could potentially affect your ability to obtain credit or other types of borrowing, and make it difficult to ‘move on’ with your life.
We must stress again that this is an extremely complex area of law, and no precedent has been set by the courts regarding the re-opening of Trust Deeds. Although there have been reports on the internet of one successful outcome where a ruling was made against the Trustee, an appeal against that ruling has apparently been made.
If you do decide to challenge the Trustee in court, it’s a good idea to clearly state that you fully complied with the terms of the Trust Deed; also that you made all payments in full and on time, that your creditors received the amounts to which they originally agreed, and that you have been fully discharged.
Some people have reported that their Trustee failed to check any entitlement to PPI refunds whilst the Trust Deed was open, and only became aware of the availability of these funds after its closure.
If you are unhappy with your Trustee’s actions in this or any other respect, you can also make a formal complaint via their regulatory body.
Scotland Debt Solutions works on behalf of Scottish residents. We can offer professional insight and guidance on matters related to your Trust Deed. Call one of the team for a same-day meeting free of charge.
The breathing space debt moratorium in Scotland enables people in debt to trigger a six-month period that’s free of creditor action, so they can take stock of their situation and formulate a plan.
The Debt Arrangement Scheme in Scotland, or DAS, enables people in serious debt to repay their creditors in full over a longer period of time.
Our Scottish based team can help advise you on your debt problems.