The funds were paid by a 3rd party. I had no idea the debt ha been paid off. Hence the TD

THis has my case manager just as confused as I am.

What effect does this have on my TD? Will my 48 monthly payments continue as normal like the said debt didn't exist?

Sorry for all the questions but this was meant to be the start of me gettig my life back together.

Robbiegwa

Hi robbiegwa

No probs.

The TD will continue with the debt excluded as it stands. You will require to maintain the contribution at the level and time agreed unless you get to the point where there is enough to pay remaining creditors in full, plus interest and costs etc.

Mark

The funds were paid by a 3rd party. I had no idea the debt ha been paid off. Hence the TD

THis has my case manager just as confused as I am.

What effect does this have on my TD? Will my 48 monthly payments continue as normal like the said debt didn't exist?

Sorry for all the questions but this was meant to be the start of me gettig my life back together.

Robbiegwa

Hi robbiegwa

I answered the points in my previous post

Mark

Hi robbiegwa.

Your trust deed will continue as expected originally. If you reach the point at which the total of your contributions reaches the total of the debts at the start, the fees of the trust deed firm, and interest on the debts, the trust deed will come to an end.

You are obviously very lucky to have such a supportive family member. If they were in a position to offer a sum equivalent to your remaining responsibilities to your trust deed (remaining months multiplied by agreed contributions) you might find that your Trustee would be happy to discharge you once this is done.

I can see how this unforeseen generosity and support has caused some confusion for you.

I thought all trust deeds only lasted 36 months, why is this one 48 months

Why would there be interest on the debts when the creditors have had to write them off

Welcome to the trust deed forum CUCRAZY.

Most trust deeds last 36 months. We don't know for sure why this one is set up over 48 months, robbiegwa may be able to tell us.

The obvious statement to make is that in this case the Trustee felt that a 48 month arrangement would be required for a trust deed to provide an acceptable return to creditors, and that robbiegwa consented to going ahead on this basis.

We do hear on the forum from time to time that people are entering into longer trust deeds because the firm they have chosen charges above average levels of fees. One particular firm has been named here again and again in that respect. Having said that, how they set their fees is a matter for them and nobody is forced to sign a trust deed if they don't like the proposed terms.

Our advice here, consistently, has been that anyone "quoted" a term in excess of 36 months for a trust deed speaks to another firm to confirm that the reason for the extended period is down to creditor expectations rather than above-average fees.

Creditors don't agree to write off debts when someone signs a trust deed. They agree to write off what someone cannot afford to repay provided that the person concerned meets their obligations to the trust deed. If someone finds themselves in a position that they can afford to repay the debts and interest that they agreed to when they took out a credit agreement why shouldn't they?

My understanding is that, When a trust deed is presented. The firm has to take no further part in the recovery of the debt. It then has to be written off. How would they then get the cost recovered and the interest. Very confusing

Taking no further part in the recovery of a debt doesn't mean that a debtor shouldn't repay them if circumstances change for the better and they can afford to does it CUCRAZY?

There are loads of websites out there promising stuff like "write off 90% of your debts". That isn't a good way to look at it, a trust deed will write off debts that you cannot afford to repay. If you can afford to repay them prior to being discharged you will be expected to.

I think most people would accept this to be fair?

Oh I think it is very fair. , however, I have been involved on the write off side of the fence on many occasions. To date we have never received one penny from any of the debtors who have taken out Trust Deeds. You have given me hope for the future

I'm sorry to hear that CUCRAZY.

I think the majority of trust deeds do end up making a payment to creditors so it's unfortunate that this hasn't been the case for you.

It's rare that we have the perspective of a creditor on the forum so thank you for sharing your experience.

This is just a wild guess from your username, but does the CU stand for "credit union"?

Hi CUCRAZY

I'm amazed that you have never received a dividend in a trust deed. Personally we pay interim dividends throughout cases and outwith exceptional trust deed cases, pay what was agreed at the start.

We have never and will never do a completed trust deed where no dividend is paid.

Mark

Yes it doesTDA, we have never recovered any costs. In a small credit union a write off has massive negative effects. I think the more I read about TD's the more confused I become.. There does not seem to be any standard rules. This case above drew my attention because there didn't seem to be proper checks put in place. It seems to be a case of, the trustee is always right, even when they screw up. When reading through the forum, the majority of people are in the confused category.

Hi CUCRAZY

I think I need to agree with you.

As it stands, the guidance has holes and fortunately is being tightened up. The single biggest issue and one totally avoided in the replanning/restructuring is the ability for a trustee, on completion, to pay no dividend coz its all fees and discharge the trust deed.

Take that wee bit out and the whole landscape changes.

Hopefully you'll believe there are some good guys.

Mark