Hi sd1972.

There is no time limit.

Extensions need to be justified though.

Hi TDA, can I ask what you mean by "no time limit"? I thought all TDs were for 3 years however I have had to lower my payment substantially due to financial difficulties and am now worrying that this may mean that my Trust Deed will now be extended? Do you think it will?

Hi betterlife.

Some people enter into trust deeds that are expected to last longer than three years. This can be because the extra period is required to ensure that the creditors get a large enough dividend that they'll allow the trust deed to become protected.

Sometimes trust deeds are extended. This might be because there is an asset that needs to be dealt with in addition to the monthly contributions. It could also happen if money that should have been paid over wasn't so that the money can be recovered for the benefit of the creditors.

If there is a change of circumstances that was out of your control your trustee seems to have two options:

1 - They extend the trust deed so that you eventually pay over the full sum that the creditors originally agreed to.

2 - The term isn't extended as the change was out of your control.

Some firms tend towards the first option, others towards the second.

I'd get in touch with your trustee to find out where you (and they) stand on this.

Hi betterlife

The key (normally) is to reach to figure agreed at the start of the proposal ie if you agreed £250 x 36, then you are agreeing to pay £9k. If there are missed payments etc, the the Trust Deed is adjusted to achieve the £9k figure.

Mark

What happens if at the final review it was decided that you had money paid to your bank account that they feel you didn't declare and that increased your td for another 2 years, this is what has happened to me, I feel I have been let down by company Wilson Andrews by not explaining everything clearly to me

Hi sd1972.

I think you're referring to the situation previously discussed at:

https://www.trust-deed.co.uk/forum/topic.asp?TOPIC_ID=3567

It's probably not possible to explain every eventuality to a client in advance, but they certainly should be made aware that if they receive extra income or a lump sum they should make their trustee aware so that a decision can be made about what will happen with the funds.

Surely if your IP was doing their job properly this would never of happened. My wage increased monthly during my Trust Deed and I sent all the job offer info into them and my contribution was increased.

I wouldn't budge sd1972 I would demand everything in writing from now on - word of mouth over the phone is no use now. Your IP should fairly justify why your td has been extended, if you haven't declared any extra money (just saying) well in fairness your IP will need to recover it someway (extension) I guess.

Hi sparky1.

My reading of the thread that I linked to was that money was received and the trustee wasn't made aware.

Oh dear, IP's don't like surprises when it comes to undeclared monies. All it takes is a phone call or email to tell them. I did with an over time payment which I was expecting to go to my creditors and to my surprise I got to keep it. I actually though my IP was the best person ever that day.

It wasn't that I didn't declare it I thought because money was paid to hubby not me (he is not in td) that it didn't count my mistake, I always made sure bank statements were sent on time as requested just have get on with it

Hi sd1972.

I thought you'd said on your previous thread that it was paid into a joint account?

Money was paid into joint account but in my husbands name not mine

Can you provide evidence to your trustee that the funds were your husband's and not yours, sd1972?

Dear sd1972

I am sorry you feel let down by Wilson Andrews in the way we have handled your Trust Deed.

It isn't possible to explain every circumstance which may result in a Trust deed being extended but the most common reasons can include; additional money received or earned, payments in lieu of assets and payments to cover arrears (to name a few).

What we do ask is that if there is any change in circumstance or you are unsure of anything then let us know and if we need to we can reassess your Trust Deed payment accordingly (your payment may go up or down depending on the circumstances).

Although your husband is not in a Trust Deed when calculating your Trust Deed payment we will take into consideration any income he receives to make sure he is paying a fair proportion of the household bills.

Following your husband's redundancy we had allowed you to make the full mortgage payment as we were unaware of the policy being paid to your husband to cover part of the mortgage and this is why your extension has been necessary.

We do understand that you are keen to complete your Trust deed as soon as possible so I have asked the team to give you a call and see if we can discuss any questions you may still have.