Any of the advisors got any thoughts on how this might affect Trust Deeds?
Reuters have reported today that Wonga are apparently going to write off a lot of outstanding debt as follows:
"The company will write off all the debt of the 330,000 customers who are in arrears for 30 days or more. A further 45,000 customers who are in arrears of up to 29 days will not be charged interest and be given longer to pay back their debt."
I had a Wonga loan which was included as part of my Trust Deed - what hapens if a creditor voluntarily writes off a debt?
Come to that....I also included the estimated bills for Statutory Repairs notices in my statement of debts (I'm in Edinburgh and got caught in the repairs scandal where the original cost escalated by the day - original estimate of £600 was £6400 by the time the contractors "found" more supposedly vital repairs as they went along and had to re-do work after the first load of lead used to repair the roof was stolen off it - anything to do with the ladders and scaffolding you left up to give easy access, lads?? Oh, the stories I could tell about those roofers! [:)]).
I hadn't actually been asked to pay the bills at the time of signing, but they amounted to nearly 10% of my total debt. I explained to my Trustee that these might or might not be valid since there's a lot of questions about whether Edinburgh Council can justify the work, the costs etc and whether I'm actually liable for any of it. The Trustee has included them since in theory Edinburgh Council could have sent a payment demand at any point. What would happen if the investigation (auditors & Fraud Squad involved, I think it's still ongoing) decided they were invalid and I wasn't liable?
I assume neither write off will affect the length of my Deed as they're not a big enough amount (give or take 8.5k total out of 93k), presumably other creditors would just be delighted to end up getting a larger than originally proposed dividend, but I'd like to know where I stand!
Hi JJDecay.
Creditors have to make a claim to your trustee and your trustee has to accept their claim as being valid.
If a creditor doesn't make a claim, or if your trustee doesn't accept a claim, you're correct that other creditors may get more than originally anticipated.
Hi JJDecay
TDA is correct. In all trust deeds, creditors are required to submit claims with supporting paperwork. On receipt, the trustee will adjudicate and accept or reject the claim.
In the circumstances you describe, it's unlikely the claims would be accepted and any dividend would be divided amongst other creditors.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.