I seem to remember being told that the furthest I could extend my TD was up to and including November 2015.

As I thought the figures that I had been provided with were with this date in mind I had budgeted for this and cutting back I was confident that I could manage this.

I have now been told that the fees and interest calculations are only up to a certain date and certainly not November 2015.

I have asked for the monthly repayments required but had wanted to wait and see what these were before committing to anyting. I did not wish to consult with a financial advisor but have reluctantly arranged an appointment with one as my Relationship Manager had said that they would advise my Trustee of the fact that I was not going to approach a financial advisor and I felt that this may affect my TD in the future.

Thanks for all the replies guys.

Mark it would appear that with Wilson Andrews the "residual obligation to the debtor" does not apply.

I have maintained from day one that I pay not too insubstantial fees to Wilson Andrews but my creditors do not. Surely part of the service that I receive should include a certain degree of flexibility from Wilson Andrews and certainly more than has been apparent. I know that on certain matters rules have to be followed but there has been a disctinct lack of flexibility.

Hi gresgow

There are no definitive time lines or guidance which dictate the extension. This is at the discretion of the Trustee.

Unless someone can show me different, I'm happy to review

Mark

I think you need to arrange a meeting with your Trustee. It appears that there is some confusion on both parts. Perhaps a meeting would allow all questions to be aired. However, this will ultimately cost you more as time costs are recorded against the case.

It remains that the proposal should be sent to creditors giving them 14 days to decide. If there are no objections, let you pay contributions. Everyone is getting paid in full after all, including the Trustee!

Unfortunately the 14 days do not apply. This is to be restricted to fees etc. I would love to go on, but its nearly 11pm.

This will be a you/trustee issue to agree and things should always try to be agreed with the trustee at the first instance. Then try and take it from there

Mark

I don't know that I agree with the idea that the individual pays substantial fees to the trustee, but the creditors do not.

The individual pays an agreed amount into the trust deed pot, for an agreed length of time. There may be changes to the amount, and/or the length of time, along the way.

The trustee takes his/her fees and outlays from the pot. The creditors get what's left.

In a very real way, the creditors are 'paying' those fees. That's why the creditors are told about the estimated fees, when they are asked to accede to the trust deed.

As for the proposals you have made to your trustee, I don't feel able to comment. You haven't told us how much remains to be paid, and what time period is involved.

Looking through your previous posts, I'm none the wiser. Your original posts suggested that you could have paid off your debts in full in just over 40 months. You have told us that your monthly payments have been increased, and that the term of the trust deed has been extended.

So, I'm having trouble getting my head round the idea that your TD would have to be extended even further - past the five year mark - for you to pay everything in full.

Maybe your trustee is being unreasonable. Maybe he/she isn't. I simply don't have enough hard facts to opine either way.

I agree Candlewick, the creditors and the debtor both fund the fees, I'm ok with that as both benefit from the service provided for those fees. For most of us, what we pay over the term is a vastly reduced sum in comparison to the amount owed plus the non-stop increases from interest and charges/penalties. What price peace of mind? That's going to vary among us but it's worth a lot to me.

Creditors benefit from a fair distribution from a small amount(possibly) as opposed to a costly pursuit and real potential of no return. To have all monies repaid plus interest would seem an uncommon and attractive possibility.

I will say though, Trustees and Case Managers vary in their view of the debtor as a customer and subsequent treatment. Although fees are rightfully paid for the work involved in sorting our messes, some are profiteering and worse, some are very disrespectful. It seems slightly arrogant when people are ignored, given conflicting info etc once they've signed up to a company.

Airlines have a captive client base once you're on a flight but it's still nice to be thanked for choosing them, as opposed to disregarded once the business is won. Lack of word of mouth advertising possibly plays a part.

I have more sympathy with some creditors than others in terms of returns.

Unfortunately, the way the trust deed regime is set up does throw up this paradox that a trustee's first responsibility is to the creditors, but in order to be acting in the first place they need the debtor to choose them over other competitors. There is an in-built risk that less conscientious firms make promises before signing that they really shouldn't, which is at the root of many of the problems we read about on this forum.

I'm not referring to this particular case, as it is seems clear that the property was inherited after the trust deed was signed and therefore its treatment in a trust deed couldn't have been agreed upon beforehand. The trustee does have a responsibility to keep uppermost in mind what is best for the creditors, but to my mind if they are being paid in full within a reasonable timescale then what is the harm in putting the proposal to creditors and letting them decide if they are happy to wait a little longer so that the property does not have to be sold?

Dear gresgow,

First of all please accept our sincere apologies for any confusion regarding your property and your Trust Deed.

As you've inherited an asset your creditors will now be paid in full. How this is achieved can be dealt with in a number of ways. You could sell the property, which we know you'd like to avoid. You may be able to release some equity in the property and use that. Or you can (as you have proposed) pay in funds to your Trust Deed to repay your creditors in full including statutory interest and costs. This would enable you to stay in your house.

Our concern is to find a solution that works for you and is sustainable for you. It's worth remembering how interest and fees will be applied during the period it takes you to pay in these sums. Statutory interest is currently 8% per annum and Trust Deed fees accrue over time. So the longer you are paying into your Trust Deed the higher the total repaid figure will be. If this is something that you are happy with then there is no problem with extending your Trust Deed to enable you to pay in over time, so long as it is all finished within a reasonable period (say 3 years). We can provide you with an updated total depending on the length of the term.

We are also concerned that the amount you decide to pay in each month should be sustainable. As we have a duty to both you and your creditors we'd like to ensure you're fully aware of the consequences of not being able to maintain the newly proposed contributions. If in the future your payments become unsustainable, as Rob says, you'll find yourself in the same position as you're in now, having to realise your asset, just a few years down the line. This is not to deter you from your proposal, simply to ensure you're fully aware of all eventualities.

We'd like to get things moving for you and again we can only apologise if our communication wasn't clear. I've asked one of my managers to call you to get this sorted.

Thank you

Steven

Thank you for your reply. My concerns that I have are that I receive a letter from WA stating that as I have now inherited the house I am required to submit my proposals for repayment of debts, fees and intereest within 21 days. The figures that I have been given clculate interst up to May of this year, why this date? I don't know. I had mentioned that my Relationship Manager had advised that it may be possible to extend the TD as far as November 2015 and I realise that interest and fees accrued would increase.

I am also concerned that I have been asked for proposal(s) to repay debts and of the two that I have come up with my RM has advised me that my Trustee has rejected these with no explanation as to why and no suggestions as to what alternative I have other than sell the house or sercure finance against the property to allow me to repay debts.

I have tonight registered my details with a mortgate boker who has advised me that they doubt whether anyone on their panel of lenders would accept me under the current circumstances.

Sorry that this has been rather long-winded

Hi gresgow.

I have heard that there are mortgage lenders prepared to provide low loan-to-value mortgages (which I think is what you need?) while you're in a trust deed (provided that the mortgage also brings the trust deed to an end).

If this turns out to be the only option, or becomes your favoured option, you may wish to talk to other brokers that have particular experience of dealing with mortgages where there are credit issues.

Your trustee may be able to point you towards one.