Terms and Conditions for your Protected Trust Deed

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1 Terms and Conditions for your Protected Trust Deed

2 Explanation of Terminology Apparent Insolvency Explanation of Terminology Apparent Insolvency Means you are unable to pay your debts or that at least one of your creditors has taken legal action against you. Debt Advice and Information Package The Scottish Governments Debt Advice and Information Package which provides important information to help you deal with your creditors and your debt. Equity The market value of an asset, such as a house or a car, minus any outstanding finance, for example a mortgage or hire purchase secured against the asset. Insolvency Practitioner A person licensed and authorised to act as trustee in an insolvency case such as a protected Trust Deed or Sequestration. Protection Once you have signed your Trust Deed, your creditors are given a five week period to object to the terms of your Trust Deed. If most of your creditors agree in accordance with the Trust Deed regulations, your Trust Deed gains protection. Property Redemption Statement Statement supplied by the mortgagee/lender showing the amount required to redeem a mortgage as at a particular date. This will help assess the equity available in your property. Trust Deed A legally binding agreement between you and your creditors where you agree to a make regular contribution from your income and to surrender certain assets to your trustee, who would deal with the creditors on your behalf and may pay them a proportion of the amount you owe. Trustee A trustee is appointed to oversee an insolvency solution and ensure all assets are made available for the creditors. Wages Arrestment A wages arrestment orders an employer to deduct funds from the employee s income at source and pay them directly to the trustee.

3 Terms and Conditions Property Valuation Property Equity Release An initial property valuation may be performed by one of a number of methods. Option 3 - internal valuation and verbal redemption figure The equity in your property may be realised for the benefit of your creditors. In some situations, it is possible to exclude your Option 1 internal valuation and redemption statement in hand A market valuation and secured loan redemption figures will be obtained in respect of the property in order to confirm the current amount of equity available therein. Option 2 desktop valuation and verbal redemption figure A market valuation and verbal redemption figures from your secured lenders will be obtained in respect of the property in order to provide an estimate of the current equity available therein. Please note the verbal redemption figures from your secured lenders will be superseded by redemption statements which will be requested directly from the lenders. The amount of equity in the property will be calculated using these updated figures. principal residence from a proposed Trust Deed. This requires both your written consent and that of your secured creditors before the proposed Trust Deed can be finalised and presented to your other creditors for their approval. An arrangement will be put in place at the outset of your Trust Deed for you to pay in funds relating to equity in your property or costs relating to the administration of any heritable property. A desktop valuation and verbal redemption figures from your secured lenders will be obtained in respect of the property in order to provide an estimate of the current equity available therein. Please note the desktop valuation figure will be superseded by an internal inspection and market valuation of the property by a chartered surveyor. Furthermore, the verbal redemption figures from your secured lenders will be superseded by redemption statements which will be requested directly from the lenders. The amount of equity in the property will be calculated using these updated figures. Option 4 desktop valuation and redemption statement in hand A desktop valuation and redemption statements from your secured lenders will be obtained in respect of the property in order to provide an estimate of the current equity available therein. Please note the desktop valuation figure will be superseded by an internal inspection and market valuation of the property by a chartered surveyor. The amount of equity in the property will be calculated using the market valuation. If you are unable to raise the agreed funds from a third party during the term of your Trust Deed you will be asked for proposals for payment once your monthly contributions have been received. You may do this by way of lump sum from a third party, remortgage, voluntary sale of the property or extended contributions with the permission of your Trustee. A voluntary sale should be discussed with your Trustee, as they will need to approve the selling agents and solicitors used and their costs.

4 Property Equity Release continued... In the event of a remortgage we would advise you to take independent advice from a qualified mortgage advisor. Given your status there is normally a restriction on the percentage of the value that a lender will allow you to borrow, but as long as the restriction on the percentage offered is in line with the industry norm (and the amount being released exceeds the equity currently existing) your Trustee will be happy to recommend to creditors that their interest in the property should be discharged on this basis, allowing you to remain in residence, therefore allowing the issue of the available equity being resolved with you retaining ownership of the property. In the event that you decide to release the equity in your property by re-mortgaging, it is recommended that you take appropriate professional advice from a qualified and regulated Financial Adviser or mortgage broker. Your Trustee may be able to recommend an Adviser or Broker to speak to.. Please note that, in the event that the equity cannot be realised as outlined above, your property may have to be sold. Should it be confirmed there is no equity available in the property, your Trustee will require a nominal sum payment of in order to discharge their interest in the property. Please note the payment can either be received from a third party during the term of your Trust Deed or your monthly contributions can be extended once your Trust Deed term has finished. Please also note that it is your responsibility to ensure that the property is covered by buildings insurance. You must provide your Trustee with a copy of your current certificate of insurance. You should also ensure that you provide your Trustee with a copy of the renewal certificate on an annual basis. Motor Vehicles If your vehicle is worth more than 3,000, your Trustee is required to realise it for the benefit of your creditors. You will, however, be allowed to continue to use your vehicle in order to enable you to travel to and from work, so long as you maintain your contributions. At the conclusion of the Trust Deed period, you will have a number of options. These will include surrendering the vehicle for sale or extending your monthly Trust Deed payments until an amount equivalent to the value of the vehicle has been paid into your estate. The use of the vehicle by you is conditional upon you maintaining adequate insurance, covering at least third party risks and having a valid MOT certificate (if appropriate). You must provide your Trustee with copies of your current insurance and MOT certificates and ensure that you also provide your Trustee with copies of renewal certificates on an annual basis until the conclusion of your Trust Deed. If copies of the appropriate certificates are not sent, you should regard your Trustee s permission to continue to use the vehicle as withdrawn, and the car must be made available for immediate sale. You should not sell, trade in or otherwise dispose of the car at any time during the Trust Deed period without your Trustee s prior authority.

5 Private registration Taking care of your money If you own a private registration number plate, the value of the registration plate will be established within the Trust Deed period and the value of the registration plate will be realised for the benefit of your creditors. Life policy If you have a life policy, the value will be estimated. Steps will be taken to confirm any surrender value. If there is a value, this will be required to be realised for the benefit of your creditors. Shares If you have shares, they should be realised within the Trust Deed period.the full amount realised will be for the benefit of creditors. Cash in hand If you have money in your bank account at the date of signing the Trust Deed, you will agree to pay this to the Trust Deed for the benefit of your creditors. Payments made by you in relation to your Trust Deed are held in an individual Trust bank account that is controlled by your Trustee and persons authorised by the Trustee to act on their behalf. Money held in your Trust account will be used to pay the fees associated with your Trust Deed and then to make payments to your creditors. Under a special arrangement with the bank that operates your Trust bank account, no bank charges are payable for the operation of your account. However, your Trust bank account receives a lower rate of interest and at times when the Bank of England base rate is low, your Trust bank account may receive zero interest. Legislation requires that your Trustee takes out insurance to protect any of your assets that are under the control of the Trustee. This means that you and the creditors are protected against the consequences of fraud undertaken by your Trustee. Errors Where errors have been caused by the Trustee or the authorised agents of the Trustee, the Trustee will ensure that the error will be rectified and that you will not suffer any financial loss as a result. Contributions It is your responsibility to send the monthly payments to your trustee, not for the trustee to chase them. If you fail to make the agreed payments the trustee will take steps to recover these funds from your income where appropriate. This will be by way of wages attachment order or salary assignation. The trustee has the power to arrest funds in your bank account however these types of action are a last resort. If there is no prospect of payments to your trust deed, the trustee will not grant you discharge from your debt. Contact your Trustee immediately if you believe that there have been any errors in the operation of your Trust Deed or your Trust bank account.

6 How your information is used Transferring rights and responsibilities Your information is used to administer your Trust Deed, improve the service that is delivered to you, assess financial risk, prevent and detect crime and aid asset recovery. Where relevant, your information may also be shared with other organisations. This may include investigating and making a Payment Protection Insurance (PPI) claim on your behalf. Unless you have indicated otherwise, your information might also be used to contact you about products and services that you may find interesting. Please contact your Trustee if you do not want to receive such communications. You can request in writing a copy of the personal records held on you and you may be charged for providing you with this information. Your Trustee can also provide you with details of the fraud prevention and credit reference agencies used, so that you can request from them copies of the information that they hold on you. Your Trustee has the right to transfer their responsibility in respect of your Trust Deed to another licensed Insolvency Practitioner. Your Trustee may subcontract part or all of the administration of your Trust Deed to another organisation. Regardless of the use of subcontractors, your Trustee has ultimate responsibility for the operation of your Trust Deed. Changes to these conditions These Conditions can be changed if there is a valid reason for doing so. This might happen as a result of changes in law, regulation or industry practice, to reflect changes in business practices (for example, including changes arising from a business reorganisation of our business) or to correct a mistake. Where these Conditions are to be changed, your Trustee will write to you explaining what is happening. The change will then come into effect no sooner than one month after it has been communicated to you. Law Your Trust Deed is governed by the laws of Scotland.

7 Communicating with us Generally communication between us will take place either through the post, on the phone or via . You can write to us at If your Trustee cannot contact you for an extended period of time, your Trust Deed may fail and there may be serious consequences including the possibility of you being made bankrupt. Campbell Wallace Fraser National House Wellington Road North Stockport SK4 1HW If you contact us over the phone you will be asked a series of questions to confirm your identity. Please have your reference number to hand. You may phone us on between 9am - 5pm, Monday to Friday. You may us at enquiries@ campbellwallacefraser.co.uk You are responsible for ensuring that your Trustee has your up to date personal details and bank account information. You must let your Trustee know of any changes in good time. If you provide (or let your Trustee continue to use) incorrect or out-of-date information, your Trustee will not be responsible if a contribution payment is not collected or if important information does not reach you. Complaints If you feel that there is cause to complain please write to your Trustee or call with full details. Your complaint will be investigated carefully and promptly, and appropriate action to resolve the matter will be taken. If the complaint is not handled in a way that satisfies you, you may contact the organisation that regulates your Trustee. Details of which will be provided on request. Contact details of the Financial Ombudsman Service or the Accountant in Bankruptcy details can be found at or

8 Campbell Wallace Fraser, Company No , registered in Scotland at 69 Buchanan Street, Glasgow G1 3HL. The Company s Office of Fair Trading Consumer Credit License number is cwftcptd_0712