Hi Jay1874.

I don't like to be the bearer of bad news, but I think that this is unlikely to happen.

Much of the work involved in looking after a trust deed occurs at the start, so there's likely to be a substantial amount of fees "on the clock" already. As such it's perhaps unlikely that there will be enough money in the "pot" to cover their fees and repay the creditors in full plus interest at the moment.

I think looking at this situation with hindsight it's clear that a trust deed wasn't the right choice. However, presumably neither you nor your future trustee had any idea that such a large lump sum would be available when you first instructed them to act for you?

I suspect DAS might have been a better route for you, but based upon the level of contribution agreed at the start a trust deed was also a perfectly viable and reasonable debt solution to enter into which you asked them to set up for you.

As such, even though you'll look back and wish you'd chosen another route, I don't think that you made a particularly bad decision at all knowing what you knew at the time.

Thanks again for the reply TDA and I completely understand where you are coming from. I know that you are probably right as well!

I just cannot believe that an agreement which was supposed to help me out of debt has effectively doubled it and there is no way out.

I've read elsewhere (although unsure on the accuracy) that PPI is deemed an asset and all assets must go into the creditors pot? Certainly if it was known PPI was coming my way when signing my agreement it would have been included as an asset, so if it isn't now, why not?

I'm intrigued by the idea of suing the bank as the money they stole from me was what pushed me into this situation. I wouldn't have the first idea where to start though. Presumable it would be for the amount required to pay the remaining amount in the trust deed pot.

I will update with my trustees response even though I am not expecting anything positive. Maybe it will help someone else in future.

Hi Jay1874.

That's exactly what's happened here. Your assets vested in your trustee when you signed the trust deed.

One asset was your potential to reclaim PPI - which is why this money will go into your trust deed "pot" now. It was and is an asset that is being collected into the pot from which your trustee and creditors are paid (there is only one pot).

What exactly would you sue the bank for? On what grounds? How would you quantify your losses? How would you fund the legal fees? A few questions to think about when weighing this thought up I suppose. The principle of wanting to confront a bank after being pushed into insolvency by their poor behaviour is totally understandable, the practicalities might be extremely difficult however.

Thanks for clearing that up TDA. I wasn't clear where PPI went during a trust deed.

I have done no research into the possibility suing my previous bank yet, it was just a comment from another poster that intrigued me. Your questions to ask myself are completely valid.

I've worked out that I have around 36 months to go if all fees in the creditor / trustee pot are to be paid. PPI refund has knocked about six months off the time when the full pot will be paid as opposed to my 48 monthly payments.

If I must continue, The one positive out of this is that my creditors will get 100% of the money I am due them now, plus interest. This makes me happy as I never wanted to write off any of my debt, I just had no other way out of them at the time.

Question - I am currently paying 6.5p in the pound to creditors. Is there any scope to offer say, 50p in the pound to them and finish up early that way?

Hi Jay1874

The older Trust Deed had a termination part which included an Offer of Composition, however the 2013 Trust Deed doc had this removed for some reason.

That said, the Trustee can write to creditors and make the offer of 50p in the £. If the creditors agree, then you could proceed on this basis. It's interesting that the Trust Deed was accepted on the basis of 6.5p in the £ as this falls below creditors normal minimum amount.

Mark

Mark, my apologies. I am paying 15p in the pound.

Depending on the response I get from my trustee regarding my current request, I may ask them if they can offer a substantial p in the £ more than the current 15p. No harm in asking the question I guess.

Hi Jay

You are correct. Hopefully the Trustee will go with the suggestion.

Mark

Interesting , Mark do you know what dividend was agreed in my case ? , happy to share any info on the forum .

I have a feeling you will be wasting your time unfortunately, Jay. This is a Trust Deed which really was unnecessary. Even ignoring the PPI, you were likely to pay back almost as much as the outstanding debt, so it is pretty hard to justify that it was ever the right route. But by not asking you about PPI and not factoring its possible existence into the advice process you it sounds like you have been done a disservice at the outset - you should have been advised about DAS regardless of whether you asked about it.

So I'm afraid I have my doubts that your chosen firm is the type of place that is likely to agree to restrict their fee and go out of their way to agree some sort of compromise with your creditors

There is only 900 available for my creditors out of a total of £5925 debts the rest is trustee fees.

I have written to my trustee today explaining the situation and how I believe I was wrongly sold a trust deed. Hopefully they will get in touch with me soon. When they do, I will let you all know.

At the same time I have also updated my income and expenditure with them (I can potentially pay more to them now that my hire purchase agreement for my old car has finished) so I am trying to keep everything above board regardless of my complaint.

That's wise Jay - there is no point in jeopardising this completing as it should, given how much you have already contributed.

Just had a forty minute phonecall with my trustee which clarified a lot but still left me with questions. Beware - the amounts below are way off my original post!!

PPI paid to my 'pot' (after cancellations of refunds (claimed before aparently) and third party fee) is £1800. I have made £1190 in payments so far. Gives a total going into my trust deed pot of £2990.

Initial cost of trust deed was £5200 (debts and trustee fee).

Now i understand with my £140 monthly payments, i will pay this £5200 off in 16 months from now and 26 months from my first payment.

Is it correct that after this balance is paid off, i will continue paying until the end of my 4 years in order to give the creditors more p in the £? Trustee fee plus my debts going into the trust deed total up to over 9k.

Hi Jay1874.

To be double sure, how much did your debts total up to just before you signed your trust deed please?