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Topic starter
28/08/2009 9:56 am
Hi there
Just looking for advice as I don't seem to be getting feedback from my Trustee. My husband and I both have seperate TDs. We have now gone beyond our 3 year period of TD and have agreed to 3rd party offering funds to allow discharge from our TDs as we were unable to remortgage due to current climate. The trustee took 20 days to issue the letter to creditors asking for them to accept the proposal which was frustrating but also this is now coming towards the end of the 14 day period where they can object. However, to add to our problems, my husband has recently been diagnosed with cancer and is just about to commence chemotherapy. We both have critical illness policies which were in force at the time of signing the TD and therefore I am assuming that any claim to the assured sum will belong to the trustee currently although this would far exceed the total debt owed. Can i ask if the Trustee can use the benefits from my husbands TD to fund debt on mine or can they only apply to his and is there a set amount they can take or can they take all outstanding debts and fees attributable?
Many thanks in advance
29/08/2009 12:01 am
Hi Mags
there are a lot of areas covered here.
I'm not sure what the proposal to creditors entailed, but would expect (with general creditor apathy) that this will be accepted. This would allow the Trustee to proceed and make payment of the dividend to creditors and close the Trust Deed. That is one side.
On the 2nd point, the Trustee (assuming he is aware of the position with your husband) may need to make a decision. He closes the Trust Deed based on the current proposal or atttempts to extend this. I will apologise for the next part, but he/she would be effectively gambling on the time period involved for the policy to crystalise to allow a payout for a greater payment to creditors.
I hope this helps (a bit)
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
31/08/2009 10:31 am
Hopefully you and your husband can get discharged quickly mags and therefore get to keep all of the funds from the critical illness policy (and I guess use some of them to pay off your third party).
If the trustee decides not to discharge you yet due to the expected funds from the policy then the rules are as follows:
- If the payout is solely in your husband's name then the funds are attributable to his trust estate only.
- His debts would be cleared plus the trustee's fees plus interest on the debts. Anything left over would then come back to him.
- He could use this excess to pay towards your trust deed if he wishes though he would not have to necessarily. I don't see why a policy paying out in his name only should prevent you from being discharged from your trust deed so hopefully you will no longer be in the trust deed anyway by then.
Kevin
PS I hope everything works out for you and that the treatment is a complete success.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
Topic starter
31/08/2009 9:35 pm
Hi guys
Thanks for your responses and your kind wishes. I have had contact from my company today who advise they are still checking things out but will get back to me asap so here' hoping. Thanks again
01/09/2009 10:24 am
Hello magscb14,
I really hope this situation is dealt with sympathetically and promptly by your Trustee and wish you both well.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
