yep I,m in the same boat but worried that they will take my redundancy pay ,as they said they would wait till I got it then decide how much they would ant if I get made redundant. its interesting that both of us seem to have paid all as requested but till well after this elusive form 5 will still not be safe ?

Hi downandout.

I don't think you need be concerned about earned income that comes your way after your income-based contributions have been completed.

Hi downandout,

Until you receive your discharge should you win the lottery or acquire/inherit any assets then these can be ingathered into the Trust Deed for the benefit of creditors. It's something to be mindful of. Ultimately until someone receives their Form 5 they are still tied to the Trust Deed.

Once you have completed all of your agreed contributions if you build up savings this isn't something which your Trustee will ask you to pay over.

Is 6 months a common timescale? stories like this make the TD seem never ending, it makes me feel trapped and claustrophobic

Just syphon your money out each month and stick it up the loft if you're going to have a large bank balance just in case.?

steve1984,

Why?

He said he is fretting a bit because he is building up a lot of savings each month and as time goes on he will have a large bank balance.

If still tied in to the Trust deed months later then in theory they could ask for it as a contribution? If its in the loft then cant.

See answers from David and I above.

Hi Timelord,

Every firm in my experience has a different way of administering Trust Deeds. Some firms will discharge a client quite quickly after their final payment and some will wait until all of the administration has been completed which can take 4-6 months.

If your with a company which advise you it will take 4-6 months to provide you with your discharge certificate (Form 5) then the only advice I can give you is to keep on at them and you may find you receive your Form 5 a little quicker. It takes a maximum of 30 mins to process the Form 5 so it's not a time consuming task.

Do you have much longer to go with your Trust Deed payments?

I don't think there is any need to stash money in the loft to avoid the Trustee asking for it. Like we previously advised once the agreed payments have been paid the client is free to do what they want with this extra money.

Hi David, I have 9 months. Hypothetical question:

I make my last payment tomorrow with no arrears etc but in two months I've still no form 5. My mum gives me her old car and it I'm the registered owner for insurance purposes - is this seen as any sort of windfall or an asset the trustee would have an interest in?

Hi Timelord

The answer would be no as the registered keeper is not the registered owner. I'm sure this states this on the V5 and also the £3k value limit of the car would still apply.

If you won the lottery on the other hand, then hypothetically yes would be the answer.

Mark

Hi TimeLord.

I guess if it were a vehicle of significant value and it was clear that you were the new owner (not just the keeper) then it probably would be deemed a windfall.

So, if you won a new Range Rover in a competition...

As Mark has written however, a family member effectively lending you a car is likely to be a different matter. Being a registered keeper does not automatically make you the owner of that vehicle.

I am amazed at the consequences a laissez-faire approach to dealing with a discharge by a trustee could have on a person. seems very unfair

It's hard to disagree with that TimeLord.