Hi elmo.

Welcome to the forum.

I'm sorry to hear that periods of unemployment have disrupted your Trust Deed.

Did either of these debts exist at the time that you signed your Trust Deed?

If you were to go bankrupt any new debts would be included in the bankruptcy.

In terms of the legal action I think it's very unlikely that this lender will try to sequestrate you given the circumstances.

With that in mind I think the most important things at the moment will be to try to find work to enable the Trust Deed to carry on, or to work with your Trustee if sequestration becomes a more appropriate option.

hiya,

the new debts came about after my trust deed was signed. the one that is threatining legal action was from an old employer who said they over-paid me in my last wage, this was passed to a collection agency, and the other just crept up over the last year using the overdraft with a few quid here and there on food etc.

i'm thinking that sequestration is now the better option for me, and i would like to work through it with my current IP, and not be taken to court or fined or whatever by this collection agency for the sake of a couple of hundred pounds.

hopefully myself and my IP will be able to resolve things before it comes to that. i just want the worry over with, as at least when i go bankrupt i know that things will be final with no more threats of legal action etc.

on a side note i have read on here about losing your bank account when your made bankrupt, so i have opened one up with no overdraft facility, and i get my benefits paid into it, and pay out direct debits for gas and electric etc. do you think that will be ok?

I imagine that your new bank account will be fine, elmo. Speak to your trustee about your situation - maybe they will be happy to proceed with sequestration straightaway if that's what you want.

Hi again,

I've just had a letter back from my Trustee regarding my situation. He says he is going to resign as my Trustee, as it costs him £500 to apply for my sequestration. I'm not sure what to do at all now, as I'm still out of work.

Hi elmo,

Not the first time that we've heard this recently where a Trustee decides to resign rather than handle the sequestration.

My understanding from the answers provided by the experts in the past is that they really ought to be handling the sequestration. Perhaps one of the experts could confirm whether or not this should be the case...

Hi elmo.

Trust Deed Assistant is right in saying that your trustee shouldn't be "resigning" simply because of a change in your circumstances. Unless you have failed to cooperate with them then they are supposed to either honour the trust deed or apply for you to be sequestrated if it is in the best interests of your creditors.

This is something you could choose to query and you may be successful in getting them to sequestrate you instead. Or alternatively you could just let it happen and then apply for sequestration yourself under the LILA criteria.

Hi,

The trustee is saying that he isn't going to resign until he claims any PPI that I may be due. Any idea how long a process this is?

Thanks

I'm afraid that's a "how long is a piece of string" question elmo.

It will depend upon the efficiency of the claims operator, the response times of the PPI seller, whether the PPI seller wishes to offer a settlement or disputes your claim, and the time required for any legal action or contact with the Financial Ombudsman if it is required.

Do you feel that any PPI was mis-sold to you?

Hi TDA,

I didn't even know what he was meaning to be honest, and looked it up! Any loan or credit card i took out i'm sure i didn't take any payment protection at all. I was just hoping to get this all finally sorted out by sequestration, but now i feel it's going to drag on for months again.

Hi elmo,

If you didn't buy any PPI there will be no claims and things really should keep moving forwards.

If you did buy PPI but you do not believe that it was mis-sold to you there should be no claims either.

Hi TDA,

Even if I did buy it I don't think it was mis-sold to me, so I've no idea where my Trustee is coming from with this. I had hoped that signing a Trust Deed would take away all the stress and worry I had, but it's turned into an even bigger nightmare than being in debt.

There are one or two Trust Deed companies who seem to have decided that they will mount PPI claims on the accounts of their clients to try to raise more money to cover their fees and/or increase distributions to creditors. This is far from being common practice, for example I don't believe any of the three firms represented on this website ever do this.

If no PPI was mis-sold to you I'd suggest you simply inform your Trustee and or any claims company that they ask to contact you of this fact.

As previously stated it would be normal for your Trustee to handle your sequestration rather than resign because your circumstances have changed.

I'm not sure that it's a Trust Deed in itself which is turning into a nightmare... I think that maybe the company that you selected to handle a Trust Deed for you could be handling all of this very differently and I'm sorry to hear that this is causing you such worry.

Hi there, do you know if it's possible to declare yourself bankrupt while your still in a trust deed, or is this something only your trustee can do? I also have a few debts that aren't included in my Trust Deed.

Hi elmo,

I'm afraid that will need to wait until something has happened with the trust deed itself, for example it being deemed to have failed, or the trustee resigning from your case.