Hi tonyd

Yes, any surplus should be returned. However the debts will be calculated at 8% interest per annum which could add significantly to the total.

In an ideal world, after the sale of the property your trustee should have proceeded to close down the trust deed on the basios that there was sufficient to repay all costs and debts plus the interest. In NOT doing so, the debts will continue to gain interest, thereby reducing any payment you will receive once concluded.

You should get onto your Trustee and get them to pay the dividend & close this down asap.

Mark

Thanks for your quick reply mark.

I have been trying to get some movement from them but up until last week I was being told that they were waiting for a vat refund to come in before they could do anything.

Tony

Hi tonyd.

That has been a legitimate issue for trust deed providers, but I think that most have overcome it by now.

As Mark has said you'll need to pay:
1 - The original debts.
2 - Interest on the debts.
3 - The fees/costs associated with your protected trust deed.

Any surplus over and above this should be returned to you in due course.

Have you asked for an estimate of when everything will be finalised?

Regardless of VAT issues, I don't see why you should be waiting so long to receive the surplus back, tonyd. Assuming there is a significant amount to come back to you then this could be done in advance of any vat refunds and then if there is anything further to be returned to you this could be done at a later date.

Hi tonyd

As Kevin says, the VAT thing is a red herring in these circumstances.

Tellthe guy to:

1. Calculate the full debt plus interest to all creditors.
2. If there are sufficient funds, pay the creditors in full.
3. Calculate their fees to date and a provision to close.
4. Send you the balance.

It really is as straightforward as that.

Mark

Just to play Devil's Advocate here...
Could Tony claim 8% interest to be added to his overpayment?

Hi Jinty

It's a good point. If you took a balanced view on this, then the return to Tony diminishes daily through no reason other than the Trustee failing to make a payment to creditors.

Mark

you have actually opened my eyes as I was not aware that interest would be paid to the creditors.

does not help that they are difficult to contact and keep changing offices and recently the person dealing with things.

Tony

TDA. The only answer I get from them is " hopefully a couple of months" That's been since the middle of last year.

Tony

Hi tonyd.

Adding interest isn't unfair really... the lender originally lent the money expecting a commercial return that you have become in a position (once again) to pay.

What does seem unfair is the prospect that the interest charges you face could increase because of an administrative problem that your trustee hasn't yet solved.

I think you should contact them and ask that the interest position is fixed at the point that you completed your obligations to the trust deed.

Hi TDA

I've known a case where there was enough to clear debts plus interest plus costs. However with the huge delay in progressing the closing, it ended up there were insufficient funds and they then pursued the individual, threatening to sell their house. Incredible!

Mark

Hi all. Thanks for the replies.

I shall be e-mailing them later today regarding your points as I am not good on the phone and in the past they have tended to " fob " me off with excuses when I have phoned.

TDA. At what point would I have completed my obligation to the trust deed? Is it when I made my last agreed payment. Or is it when they received the money from the sale of the house?

On a side note. my trustee took legal action to force the sale of the property after my youngest child turned 18 as I was unable to release any equity from it and my ex partner was unwilling to sell.

Thanks Tony

Hi tonyd

Your obligation is generaly when you have made the last payment either in relation to the contributions or assets whichever was latest payment made.

You should keep on top of them and remind them if there is a balance to be returned to you then this diminishes daily. The quickest and easiest solution for them is to pay the creditors immediately, therefore wiping out any additional interest and then closing down the trust deed.

Mark

Shocked

Ok so I phoned my trustee up today to try and find out what the position is..

They tell me that they have written to the creditors and things are moving towards closing the trust deed.

What shocked me though was being told that there is no surplus money and nothing to be returned to me....

Can someone please explain how.

Original debt £22,630

my contributions £7,650
ppi refund £6,994
cash at bank £7,330
equity from
house sale £46,924

Trustee fee £13000
legal fees from house sale £11 500
Ppi refund fee £ 2,098

So how come with taking £69,000 from me for a debt of £22,630 works?

I feel like I have been robbed.

Am not naming my trustee as that would probably cause problems.