Hi Terrestrial1.

I think we’d need to know the reason why nothing is owed now. For example, could there have been PPI claims so large that they’ve set-off your full debt to them?

Regarding your trust deed, this might not make any difference (or it might!). Your payment will remain the same as it’s based upon affordability. The term would only be reduced if you repaid in full all of the other debts, interest on those debts, and the fees and costs of your trustee.

Hi TDA.

Spoke to Carrington Dean today who asked me to forward on the letter. They say that as RBS make up the biggest portion of the amount owed that they may look to either discharge the trust deed after seeing how much has been paid thus far, reduce my payments or other routes of repayment instead of a TD. If RBS is taken out of the equation now then what is owed to creditors would fall well below the £5000 minimum amount of debt needed for a PTD.

I called RBS too but wasn't able to get through to their insolvency team to explain why, when they are aware of the PTD and made efforts to secure the biggest dividend, they have suddenly made an about turn and given a reprieve.

I'm quite confused and a little worried at this point but can only wait for Carrington Dean to look into it. From my conversation with them it looks like I may be discharged early but they weren't very forthcoming in explaining if this means that I am out on the open road with no obligations anymore (if my total payments to date cover the TD minus RBS's share), or if this could mean retroactively not meeting the requirements of a TD and it failing and me being essentially back at square one having to contact all of my creditors and start paying them individually again.

They did say, after I asked, that bankruptcy probably wouldn't be looked at by my creditors because the remaining ones were in the three figures of what was owed so that's quite reassuring.

The idea of my monthly contributions coming down doesn't sound appealing, surely it would make more sense to continue at the same rate as I have done for the last two years and finish the trust deed earlier in any eventuality. Is there any recommendation in the legislation for a TD ending before the 4 year minimum period?

I really don't know where I stand, can only wait to hear back from Carrington Dean but can only hope this means a light at the end of the tunnel a little quicker.

[edit]

No PPI was found when a search was done at the very start of my PTD, and my debts all originated from 2015 onwards so well after the scandal. Can't imagine if it is because of this. I do wonder though if RBS are getting rid of a lot of TD debt after the recent Mond case in lieu of offsetting debts.

Hi Terrestrial1.

If your qualifying debts were more than £5,000 when your trust deed began I find it hard to believe that your trust deed would have to end (without discharge from your debts) now.

How much do you pay each month into your trust deed?

Regards an early finish, if you've paid the full (now reduced) debts, plus interest, plus your trustee's fees, the arrangement should come to an end.

So....a lengthy chat with RBS today. The debt has not been discharged, it has been sold on to someone else, as appears to be the standard with a lot of creditors once a TD is signed.

I haven't received any correspondence from the new owners of the debt but the letter from RBS is a little misleading I would say. Doesn't mention anything about selling it on and makes it out like the amount his been wiped for good, and not passed on to someone else as what has actually happened.

This is the first time a debt has been sold on mid term. The ones that were passed to groups like PRA happened within weeks of my deed getting protected so I'm a little unsure as to what happens with the total amount owed (iz in will this new company add any extra charges etc) and with no correspondence from them I'm left a little in the lurch.

Oh well, that early light at the end of the tunnel did seem a little too bright to be true

It is normal for debts to be sold in this way after a trust deed has began.

The balance of each debt should have been fixed when your trust deed began and no further charges should have been added.