Welcome to the forum Jay1874.

Any money paid into your trust deed, from you or anyone else, goes into a pot.

From that pot your trustee will be paid first and your creditors second.

If the total amount paid into that pot exceeds a certain level you'll be discharged. That level is the total of:

1: your trustee's fees

2: your total debts at the start of the trust deed

3: interest on those debts

This total sum could obviously end up being a lot more than your debt total at the start so an early finish may or may not be on the cards depending upon what else is being paid in.

Many thanks for the reply TDA.

So from that PPI return my trustee will basically get paid completely then the rest goes to creditors?

I pay £110 a month. Any idea on a finishing time?

Hi Jay1874.

Maybe not immediately, but your trustee does have first call on the funds.

From the figures provided it doesn't necessarily look like you can expect an early finish, but your trustee will be able to look into the detail of this for you if you ask them.

Hi Jay1874,

If your Trust Deed was signed after 28 November 2013 then the only way your Trustee can close your case early is by paying your debts in full plus interest.

As TDA has advised your Trustee takes their fee first and then the funds left over are paid to the creditors.

Speak with your Trustee about it but unfortunately i think you will probably have to completed all of your agreed payments.

So if ppi had been reclaimed 1st you wouldnt have needed to suffer an insolvency?

Paul

Jay, sue the banks, if you never had PPI, you wouldn't have been in debt, now look what you have to do, pay twice practically... The banks caused this problem with most of us and us homeowners that get made redundant... there is no help... we just have to get on with it and hope for the best. I'm glad I am over the hill with this now.

This does seem to be an unfortunate personal insolvency to which bad behaviour by banks might well be at the root of the problem. It unfortunately also looks as though prior PPI claims by Jay1874 might have avoided the need for a trust deed at all.

I'm also conscious that DAS, avoiding a personal insolvency , might have been expected to only run for six months longer than a trust deed even without a lump sum becoming available.

Think there has been some poor advice given initially to jay. Pity because 6 years of busted credit files is a long time!

Paul

Looking at the information, there are a couple of things. As TDA mentions, DAS would have run only 6 months longer than the Trust Deed, so may have been the better option.

The figure for the Trustee's fees are based on the work etc over a 48 month period, so I wonder if there is the possibility of the debts being repaid in full, plus interest and the Trustee restricting their fee to allow the matter to close early.

Do you know if the £5,558.34 is the net figure or are there likely to be fees from the PPI company deducted from this?

Mark

Thanks for the replies guys.

I can answer that £5558.34 in indeed the net sum I will receive in PPI.

Looks like I didn't need a trust deed at all. I am gutted and am now looking at another few years paying debts / admin fees that shouldn't even have existed.

Were any other options offered to you?

Not really. I was advised by a family member that a trust deed might be an option so it was me who made the initial enquiries about them.

I knew my debts were on the low end to enter a trust deed but it was sold to me by my trustee. I even came out a DMP to enter it because I could afford the monthly payments and my DM company would not lower them.

My trustee knew this and at no time tried to get me on any other options. It was a case of "you have enquired about a trust deed, we will set it up for you" and they did.

To the poster above, no had I claimed PPI then it would have cleared off pretty much all my debts.

Now I'm insolvent, paying back almost double my original debt.

Apologies for yet another post on here but I have written to my trustee explaining the full situation and asked if they would be willing to pay my creditors in full, restrict my admin fees and have me discharged earlier.

I understand that this is a big ask, but it will report back to let you know how I get on.