Welcome to the forum JimmieB.

Before answering your main question, it would be helpful to know how much debt has been included in your trust deed. Could you let us know?

Hi TDA, and thanks for the welcome[:)]

It's about £60k[:(], I know, I know....I'm assuming there isn't anything I can do, I was just wondering as my creditors had agreed a settlement, my trustee could go back to them with this offer??

Jim

Hi JimmieB.

The amount that remains owing is based upon the debts that you have, rather than the reduced proposal that your creditors accepted at the start of the trust deed.

A PPI payment of £20,000 plus your expected contributions (around £19,000) isn't going to clear that so the trust deed would carry on as envisaged.

The net effect of the £20,000 for PPI is just that your creditors receive back more of what is owed to them than they might have previously expected.

The subject of struggling to afford the £400 monthly payments is separate and unconnected. However, now might not be a bad time to go back to your trustee to ask for that to be reviewed if you can demonstrate why it's not affordable.

Thanks TDA,

I thought this would have been the case....

Out of interest, now that the creditors pot is more than what my agreed contribution is, and I'm struggling to meet the £400 monthly payment, what' the worst case scenario, my TD has confirmed I have no equity in my house, however, I'm concerned I could lose my house even though this would generate no additional monies for the pot, or, could is it be a case my TD is extended until I've paid the £19,200, no matter how long this takes. I guess I'm hoping (wishful thinking!) my Trustee could go back to my creditors and advise I'm struggling with the monthly payments, however, due the large PPI windfall, and a reduced contribution from the me, this is still more than what my creditors agree too?

Hi JimmieB,

I can understand why you would ask the question as a £20,000 PPI payment is a significant sum of money. If I were in your shoes I would also ask the same questions that you are asking!

Since November 2013 when legislation changed regarding Trust Deeds, they can only be shortened and brought to a close early if the total debt, plus interest and costs are repaid in full. As this won't happen then it's not possible to end the Trust Deed term early and you will need to complete the 48 month term.

When setting up your Trust Deed did you sit down with an advisor and work out what payment per month would be affordable for you taking into account your average earnings over a period of time? Is there anything that has changed from the start of your Trust Deed until now which is making the payment difficult?

Like TDA has advised if you find you are struggling with your payment per month the you want to bring this to your Trustees attention and ask for them to review the position. Struggling for 48 months to pay a payment will only cause problems later on down the line.

Let us know how you get on after you speak with your Trustee about your payments and budget.

Hi JimmieB

Whilst the ppi money and your monthly contribution payment are not connected, nevertheless I think it can only help and your trustee may well be more inclined to reduce your contributions if justifiable due to your circumstances, safe in the knowledge that creditors are getting back more than originally expected anyway.

You shouldn't worry about asking the question - worst case is that your trustee says no.

Thanks David,

The problems are due to be being self employed and my income being quite up & down, I've also had to get a couple of fairly substantial repairs to my van over the past couple of months which hasn't helped. I'm going to give them a call this morning, and take it from there, thanks again guys for your help.