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Scottish Trust Deed Forum
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Topic starter
06/05/2014 1:52 pm
Hi
I just had a conversation with my trustee after receiving my 1st year report to my creditors. It seems now that my contributions have went up that they will be receiving £1 to the £1 and there will be no write off of any debt. I also noted that the trustee's fee will rise from £5100 to £7900 during the full five years I will be tied in, three years being not enough to pay this off (and to avoid selling my house for the equity involved apparently).
As i understand it now my debt is made up of -
£15000 debt plus 8% interest and £7900 fees to the trustee totalling £23.000 if my income remains the same as it is now (more or less)
As i will no doubt be in for the full five year term, can you tell me if this is all i am liable for ? and if my income and therefore my contributions were to increase over the years what would happen when i reach the 23k figure earlier than planned ?
Sorry to bother you with this but i am a bit confused as to what happens near the end of my STD and the girl i spoke to could not make this clear to me
06/05/2014 2:20 pm
Hi bobbyf2014
As you signed pre November 2013, then the Trustee's fees will probably be based on a time cost rather than a fixed fee and therefore the fee could rise over the next 4 years.
Thge interest is calculated on an annual basis as opposed to a straight 8% of the debts, so the figure fpor interest will also increase I suspect.
From your post, the Trust Deed will appear to carry on as normal for the full duration and be subject to reviews which may or may not result in an increase in contributions.
Hopefully this makes some sense.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
06/05/2014 2:31 pm
Thanks Mark, makes more sense now
06/05/2014 2:58 pm
Phew! I was getting myself confused halfway through the post.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
