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Scottish Trust Deed Forum
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Topic starter
24/02/2015 2:29 pm
I am 18 months into a trust deed after previously being in a debt managment plan in England, I originally owed £17,800 when the change over took place.
Unfortunately my friend died and left me £25,000 so i notified my trust deed provider, as i was aware i was duty bound to do so. The final settlement figures they have now given me are £21,617 owed to my creditors, Their fees £4774, and statutory interest of £2806 (Why?) So now i owe the princely sum of £26544....minus what i have paid already. But they will except the whole £25,000 as final payment.. This is way more than i owed when i first went into debt management in England.
Is this normal? They say the creditors figure may go up or down. I feel like i've been robbed! Am i likely to see any change From my final payment?
Obviously none of us have a crystal ball, and if i had just carried on the payments for the next 3 1/2 years and i hadnt inherited any money, i would have paid back a lot less. It just feels really harsh & i wondered if there was any come back at all?
24/02/2015 2:53 pm
Welcome to the forum bagpuss.
As you're obviously aware windfalls (cash or assets) are drawn into a trust deed.
Creditors will generally expect to write off a proportion of what is owed to them when someone goes into a trust deed. However, that's conditional upon the full amount of the debt being unaffordable to repay.
If circumstances change (with the receipt of a large lump sum for example) your creditors can expect to be paid in full. They can also expect to receive some interest - as they would have done when the money was lent originally.
The creditors will also not expect to (effectively) pay the fees for the trust deed if you become in a position to do so. If you can afford to pay them you'll be expected to.
As such, it is possible to end up paying a significant amount more than was owed at the start of a trust deed I'm afraid.
The arrangement will only write-off what you cannot afford to repay and you're liable for interest and the fees if you later become in a position to pay them.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
24/02/2015 9:52 pm
I don't understand why your debts are £21617 plus interest. Do you know what accounts for the difference to the amount that you thought you owed?
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
