Hi Nel.

I think Form 4 is just an annual report of some type.

It doesn't mean you should necessarily expect any issue in respect of Form 5.

Hi Nel,

As TDA has said a Form 4 is your Trustee's Annual Statement on the status of your Protected Trust Deed that gets sent to all creditors, the Accountant in Bankruptcy and yourself.

Unless there are any issues listed on the Form 4 receiving this would not mean there was any issue with your Form 5.

Not to high jack the OP thread again, but what "issues" could arise? Could you give examples as I'm still not 100% sure that going into a deed is actually beneficial as there seems to be a lot of "ifs" and "buts" throughout. I.e. Increase of payments whenever even though there the person has not earned more meaning that the person in the deed has to make their case.
I know of course a lot go on without hitches and you mostly read about problems.

Hi Rob8.

I can understand why you might get that impression from this forum. For obvious reasons people will tend to post here when there’s an issue of some sort. Nobody’s going to take the time to register and post to say things are going just as expected.

From a professional perspective many of the issues posted here are misunderstandings. Not surprising really given some aspects of the process are quite complex and as almost everyone going through the process is doing so for the first time.

Miscommunication, or a lack of communication, is also a common issue. Many of the answers posted here by the experts are variants of “you should talk this through with your trustee” and more often than not a solution is found after that happens.

The key really is to find an adviser/provider that you have reason to trust and then bombard them with questions until you feel empowered to make a confident decision about whether this would be a positive or negative step to take.

I’d think most reputable providers would also be happy to clarify and key issues in writing before you made any decision to go ahead, so you’d have confidence that you could refer back to that if any concern later arose.

To be fair though, entering a trust deed is a big decision and you’re smart not to do it unless and until it feels right. Rushing a decision and not understanding the consequences can be a key source of later problems.

Still, would like to know what could go on this form 4 and be classed as issues?

It’s here Rob8...

https://www.aib.gov.uk/sites/default/files/ptd_forms_regulations_2016_-_form_4_0.pdf

As stated above, the form 4 is just an annual report sent to your creditors and the Accountant in Bankruptcy to advise how a Trust Deed is progressing, what has been paid in/out and what the expected return to creditors now is.

Obviously, if there is a problem such as a person not paying their contribution payments then a Trustee has a duty to report this on the Form 4 as well as state their intended course of action (for example refuse to discharge the individual until the contributions are made good).

You mention payments being increased despite someone not earning more. I'm not sure if you are referring to a particular example, but this should only happen if something else changes which means they can afford more, i.e. someone's bills reduce for some reason.

Please don't hesitate to ask if you have any further questions Rob8 - hijack away! As Trust Deed Assistant says, it is important to understand the process fully before deciding whether it is something that would suit you.

Hi

Thanks for all the reply’s. The form does look pretty standard and I’ve never missed a payment and have declared every salary increase that I have had over the last 4 years so I’m hoping things will go smoothly and I’ll receive my Form 5 soon.

Only then will I feel like it’s over. This will be my first month without making the payment but I have set up a standing order to put the money into my credit union savings account - I need to start to build up some savings.
Thanks again.

That's a great idea Nel.

A savings buffer is a great way to protect yourself from unexpected costs and unexpected changes in the future.

Good for you, Nel. If you are used to managing without that money anyway then why not try and keep doing so. It'll feel great to have that money in the bank and it's surprising how quickly it builds up!

Great idea Nel, Having being used to making the payment for the past 4 years, very sensible to then set up a savings with it. Giving yourself a rainy day fund which will come in handy.

I've received my form 4 from carrington dean as well and I don't really understand it. It says 'i state that an interim dividend has not been paid to creditors in year 2 for the following reasons.. Then it states that there were insufficient funds to enable a dividend of at least 5p in the £ to creditors . I don't get this as I have never missed a payment and in just going by the amount that they set and have been paying for 24 months now. Should I be concerned about this ? And does it change anything for me ? Tried calling but waited so long on hold to get through to them. Also. My annual Review was sent back over two weeks ago now and I still haven't heard anything back. What is the time scale usually for this ? Can't remember waiting as long to hear back last time. Hopefully my payments remain the same and everything is running smoothly.

I am sure you have nothing to worry about, Stace2988, it's just the way these things work.

It is common for no dividend to be paid to creditors after year 2, unless it is a high monthly contribution that is being paid, as a lot of the funds gathered in are likely to have been allocated to fees and costs. The bulk of the funds that are paid to creditors are those that are collected in the 3rd and 4th years.

Ah I see thank you. I must not be the only one who gets confused by the way these type of things are worded. For a minute I thought my trust deed might have been failing as it looked like no payment to creditors had been made but your explanation makes more sense. Thanks