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Topic starter
24/08/2011 8:51 pm
Hi
Can anyone tell me if there is such thing as a minimum monthly repayment on a PTD.
Currently my wife and I are paying £800 between us, our debt is in the region of £40K. At the minute everything is fine, don't get me wrong we are struggling, but we have set direct debits for the PTD, mortgage, council tax etc to come out at the start of the month to make sure everything is paid (especially the PTD), and what ever we have left from our salary we just have to make do.
But what if something happens to one of us? Say I lose my job or my wife becomes pregnant? Obviously we won't be able to make those kind of repayments as we are currently having cans of ASDA own brand tuna for dinner more often than I'd like.
I would hate for the PTD to fail after paying so much into it. So, is there a set minimum payment? Is it set as a percentage of your debit that MUST be repaid? Is it just enough that after the Trustee's fees are paid there is something left for the creditors? Who's decision is it? Can the trustee make that decision without consultation / agreement from the creditors? Does the original total amount stand with just the duration extended to achieve this through smaller payments over a longer period of time (this would be the worst outcome, I would seriously consider bankruptcy before extending)?
Sorry, I know that is a lot ot questions (probably enough for a few topics!)
PB
24/08/2011 9:35 pm
There is no set minimum payment, Poorboy. In signing the trust deed you are obliged only to pay whatever you can reasonably afford each month. If this changes, whether up or down, then your trust deed contribution would change too.
If your contributions have to be reduced then as long as it is due to circumstances beyond your control you would not normally be penalised. Having said that, it is common practice for trustees to extend the period of trust deeds to compensate creditors to some degree.
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25/08/2011 8:00 am
Hi poorboy
To expand a wee bit, you are required to meet the proposal outlined to creditors at the start of the trust deed ie If your trust deed is 36 months then you're part of the deal is to repay £28,800 ( 36 x £800) and that is the figure creditors agreed and need to be paid in the life of the Trust Deed. As Kevin says, if the amount is reduced, the perion will be extended to make up any shortfall.
Hope this helps
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
25/08/2011 9:03 am
My circumstances changed six months into my TD (4 day week at work) and my contributions were lowered. After I went back to 5 days almost 18 months later my payments went up again but my TD was brought to a conclusion after 36 months.
I did ask my trustee about this but she insisted that as my change in circumstances was completely beyond my control the TD would no be extended. Surely I can't be the only case where this has happened?
25/08/2011 9:15 am
I don't think that you are tinsoldier.
The way that this is handled (like a few things connected to trust deeds) seems to vary a little from firm to firm according to what we read here.
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