Hi Sasnon

I am surprised at the approach and attitude of the IP firm. Could you advise me how long it took between the initial meeting and the signing of the Trust Deed. I assume you were advised of the pro's and cons at the time and to be honest, the IP firm were not aware that your family would help.

Generally, you cannot just withdraw from the Trust Deed as it is a legally binding arrangement which binds you, your creditors and your Trustee. However I see no reason why your Trustee cannot make a proposal to creditors to repay the TD early, after all the TD is agreed only by the creditors consent. The repayment does not require to be payment in full, as long as it is contained within the proposal.

One note on the above though, your family would require to show that they had available funds to assist before anything would happen, so I can only advise that you speak with the Trustee and advise him of the position.

Mark

Hi sasnon. Just a small point to add to Mark's suggestion. Whilst you should be able to be released from the trust deed early, I'm afraid the insolvency practitioner is likely to want any costs he/she has incurred to be paid too before they would be willing to discharge you. This should not come to the full amount they will have quoted on your trust deed proposal, just what they have incurred so far.

Hi Mark/Kevin,

Thanks for your reply and showing an interest in my situation.

I had a meeting last Monday 23/02/2009 and signed the Trust Deed between 30 minutes to one hour of the meeting. The Trust Deed was then published in the Edinburgh Gazette on Friday 27/02/2009.
I did make contact with the IP on Friday 27/02/2009 to advise of my changing circumstances (family help)and to enquire about the deed being withdrawn, unfortunately I was advised it was highly unlikely.
I cannot be 100% sure that I was advised of any pros & cons however I did sign a number of documents at the time (I cannot recall what I signed as I was feeling stressed about the situation, also I did not not receive copies of any signed documents).
The thought of my family assisting me did not cross my mind at that moment as I felt too embarrassed/frightened to tell them of my situation.
I am due to make payment to a loan next week, should I pay or not?
What would happen if I pay all creditors all monies owed before the the decision is made to become a "Protected Trust Deed" (within the 5 week period from published date in the Edinburgh Gazette)?
Further to Kevin's comments, what do you deem to be "reasonable" costs for the charges incured from the IP to date?

I appreciate both your comments and would be grateful for any additional advice you can give.

sn

Hi Sasnon

Firstly I have to say I am disappointed that the signing took place at the 1st meeting. I have posted a number of times on this matter and have strong issues with firms who adopt this procedure.

There are 2 options really, firstly the Trustee seeks the payment of all debts in full, plus interest and costs. Alternatively he/she makes an offer of settlement on a full and final basis. I suppose there is a 3rd option where you could be to fulfill the terms of the proposal outlined to the creditors, but just settle this early.

It is difficult to gauge costs as this is usually dependent on time charged etc. I think the best plan is to try and agree a flat fee to the point of closure.

Hope this helps.

Mark

Hi Mark,

Can you confirm if there is a cooling off period or not? I read a consultation report from the Scottish Government(2006) and I am not sure if this was passed in legislation.
One last thing, can my Trustee act now on the options noted above or do I have to wait 5 weeks to confirm if I receive "Protected" status or not?

Thank you once again for your time and I will keep you informed in my quest for a common sense solution.

sn

sn

Hi Sasnon

There is no cooling off period as such. There is guidance on the matter for IP's from the AIB's office. The coolong off period was a suggestion in the amendments. The guidance states:

'The AIB recommends that a debtor is allowed adequate time to think about the consequences and their alternatives before granting a trust deed. The insolvency practitioner must be confident that the debtor has understood the advice they have provided. Insolvency practitioners should bear in mind that the debtorÔÇÖs anxiety about their immediate financial circumstances may affect their ability to think through the longer term consequences of a protected trust deed. Allowing the debtor time to think is a good practice which may avoid future complaints'

Did the IP provide you with the Governments 'Debt Advice and Information Pack'? This is a requirement before proceeding. It's a small black leaflet.

The protected point is an interesting one. If you allow matters to go to the protected stage, then your family could offer settlement of the entire 3 years funds under the proposal to close early.

Who is your IP as a matter of interest?

Mark

Hi Mark,

I did receive a photocopy of a leaflet I believe to be the "Debt Advice and Information Pack".

Is it beneficial to to offer a settlement now or at the "Protected" stage?

I would prefer not to disclose the IP at this moment, as I do not want to jeopardise my chances of a speedy and amicable solution.

Thanks again for your advice, I will contact my IP in the next day or so and advise you of my progress.

sn

Hi Sasno

No problem. Curiosity getting the better of me!!

Let me know how you get on.

Mark