Welcome to the forum danimc01.

The most that you can be asked to pay (in total) to your protected trust deed is the sum of the following:

1 - The total of your debts.
2 - Interest on the debts.
3 - The fees and costs associated with running the trust deed.

If your total contributions (from whatever source) exceed this you should be discharged. Any excess amount should be returned to you.

Hi danimc01,

I'm sorry to hear of the difficulties you are having and the way you feel towards your Trust Deed.

At the point in time you considered and entered into the Trust Deed it would have been a suitable option to deal with your debts. As there has been a change in your circumstances then your Trust Deed payments would have been altered and an extension has been deemed necessary by your Trustee to account for this.

As TDA has advised, there is a specific way to calculate what you can be asked to pay and any overpayment can be returned to you.

Unfortunately as we have found out on the forum the fees associated with a Trust Deed can be large and expensive and vary from firm to firm which can have an impact on your Trust Deed.

How much did you originally agreed to pay to your Trust Deed and how long was it due to last for? Also, how long is your Trust Deed being extended by?

Thank you both for getting back to me.I found my proposed scheme of division.
it says Receipts total £6192
Trustees Renumeration £4987 plus other fees ads, reg fee for insolvency etc totals £5423

Available to ordinary creditors £769
les:due to ordinary creditors £7668
Estimated Deficiency £6899

I dont know what this means really £7668 was our added debt totals, i'm so confused. I dont know how long it will be extended as i was just told at the time of my requesting a decrease in payments, that if this is apporved it may increase your deed agreement but no one has come back and confirmed when it will finish.

i should have added that i only decreased for a year, it was only while on maternity leave

Hi danimc01.

What it seems to mean is that the trustee has set their fees at a level that leaves the minimum possible dividend (10%) for the creditors. It's a subject we were discussing here earlier this week.

To you if means:

1 - Your debts were £7668 at the start.
2 - Interest will have accrued on these debts (if you can afford to pay it) in addition to the trustee fees/costs.
3 - The fees/costs of the trust deed seem to be £5423.

Therefore to finish the trust deed early it looks like your total contributions would need to be £13091 plus some interest.

thanks for making that simpler for me. The term lasts four years, and from reading other posts some people have thought have finished but then had to pay even more money.what should i expect after four years, do they tend to drag on and is their balloon payments at the end, i got a statement saying i had paid a thousand odd pounds, cant remember exact figure but that this had gone towards my fees? after your term is up how long does it take to be completely over? i was also told that my credit file would repair itself quicker than the 6 years if i did this on my own.i dont want to get credit really but would like to eventually get my own house.

Hi danimc01.

You'd only be expected to pay more if there was a reason for that to happen. For example:

1 - You hadn't disclosed a change of circumstances that meant you could have afforded to pay more.
2 - You have an asset that needs to be realised for the benefit of your creditors.
3 - Your payment reduces during the term.

Once you've completed your obligations it SHOULD only take a few weeks for you to be discharged. Sadly we hear of a couple of firms that tend to take a lot longer than this.

There are things that you can do to hasten improvement in your credit rating. The trust deed will remain on your file for a period of six years from the start though which may be of concern to lenders.

thanks so much for the advice, i feel a bit better although still gutted at the ppi thing.I suppose i only have a couple of years left so would rather go with that than stump up over £13K!

Hi danimc01,

If I'm right, your Trust Deed was based over 4 years, you had agreed to pay a total amount back of £6,192 which I think meant you would pay £129 per month. Your creditors therefore agreed to a Trust Deed proposal in that you would make a minimum payment of £129 for 4 years.

Based on the costs of your Trust Deed, your creditors would share the sum of £769 between them at the end.

As you have PPI then your Trustee has an obligation to ingather this and pay more money towards your debts of £7,668.

As your debts would not be paid off in full, I assume your Trustee will extend the term to ingather the amount of money that was missed when you reduced your payments.

For example... Say you reduced your payments from £129 per month to £64.50 and paid this for a year. You would have accumulated arrears of £774 due to the reduction in payments. At the end of your 4 years, your Trust Deed would be extended until that £774 was ingathered. £774 divided by £129 means a further 6 months.

You should contact your Trustee/Relationship Manager and ask them how much you have outstanding in respect of your monthly payments. From this you can calculate how long you have left in your Trust Deed.

I hope this all makes sense and gives you a better understanding and I've got the numbers correct...

danimc, when you signed the trust deed, were you given any information about DAS?

Hi candlewick.

The same question had crossed my mind.

David

You make reference to accruing arrears if the monthly contribution is decreased but this happened to me when I was placed on a 4 day week at work, through no fault of my own.

My trust deed still completed after 36 months though.

Hi tinsoldier.

Some firms take the view that a negative change in circumstances for a client, that was outside of their control, should not result in any kind of penalty being applied.

It's one of those issues where trustees seem to take different positions.

Hi tinsoldier,

TDA has said what I was in the process of typing and beat me to it.

Some firms extend Trust Deed's due to a change in a person's circumstances and some don't.

I think it really depends on individual circumstances and a number of factors for deciding if a Trust Deed should be extended or not and that's for each Trustee to decide.