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Topic starter
15/07/2013 3:14 pm
I set up my trust deed in 2004. Initially, the amount I had to pay was £9,000 over 3 years. There was no equity in my little flat, which was valued at £28,000. I was advised to pay an extra £500 to buy out "equity in the property".
By the end of the 3 years, I had repaid less than £3,000 and hadn't paid the extra £500. Over the next couple of years, I paid back very little.
By November 2009, my Trustee had lost patience and asked for increased contributions. He asked for £6,000 representing outstanding contributions, plus £12,000 to ÔÇ£discharge his interest in my propertyÔÇØ. The original £500 had increased to £12,000 based on his valuation of my little flat, which seemingly was now worth £58,000! The period to repay was extended for another 3 years.
Since then, I have only repaid another £5,900, leaving £12,100 outstanding.
In 2009, I didn't agree to the increased amount, because it seemed excessive. I know that I haven't kept to our initial agreement, but I still think it's too much to ask me to repay.
In the meantime, I have incurred more debt re mortgage, personal loan, council tax, factoring fees etc. But my Trustee doesn't care. He refuses to negotiate. What can I do?
15/07/2013 4:18 pm
Hi AngryDad, and welcome to the forum.
Have you had a valuation done on the property recently? If you disagree with what your trustee reckons then you'd really have to be able to back this up before they are likely to pay any heed.
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Topic starter
19/07/2013 3:02 pm
Thanks for your reply, Kevin.
What does the value of my flat have to do with anything? When I originally undertook to follow a trust deed, the amount I would pay back was £9,000. This figure was agreed by both parties, because I could afford it. The extra £500 was never properly explained to me, but I accepted that I would deal with at the end of the 3 years.
I accept that I did not keep to my side of the arrangement ÔÇô I have broken a contract, if you like. I can not afford to pay back another £12,000.
Please answer these questions.
Is my Trustee allowed to ask for more money, simply because I ÔÇÿbroke' the original contract?
Is my Trustee allowed to set any figure he wants because I ÔÇÿbroke' the original contract?
I do not agree with my Trustee. Who speaks on my behalf?
Thanks for your help.
AngryDad.
19/07/2013 3:41 pm
Hi AngryDad.
I think there's a misunderstanding about the nature of the agreement you entered into.
Two things occurred when you signed the trust deed:
1 - You committed to pay what your trustee deems you could reasonably afford to pay from your disposable income over a period of three years. The £9000 was an estimate based upon your circumstances at the time. If circumstances improved this figure could increase. If the payments weren't maintained the term could be extended to recover this sum that your creditors agreed to when they allowed it to become a protected trust deed.
2 - Your assets vested in your trustee, who you obligated to use them to help repay your creditors when you signed your trust deed. They have a legal obligation to do this. As there was no equity at the time you were given the chance to pay £500 to prevent a revaluation of the property in case the amount of equity increased later. This sum wasn't paid, and the amount of equity has increased.
In terms of your questions:
A: I don't think the sum requested relates to you breaking a contract. I think it relates to missed contributions and an asset that has increased in value.
B: No. It should relate to the term of your agreement, changes in your circumstances thereafter, and the value of any assets that you own that vested in your trustee for the benefit of your creditors when you signed the trust deed.
C: You do, unless you choose to get legal representation or representation of another type.
Do you dispute the valuation placed upon your home by your trustee? If so this may be an angle to push on by sourcing a credible valuation of your own. This might have the effect of reducing the sum due if you can convince your trustee that there is evidence that their equity figure is incorrect.
Do you have anything in writing that indicates that you could pay the £500 at any point prior to your discharge to prevent a further valuation being taken into account by your trustee? If so this might be another angle to consider.
Sorry that some of this information may not be what you were hoping to hear, but I hope that it helps to explain the current situation for you.
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