Hello AnnaS and welcome.

We're probably not going to agree on whether you're in a scam I'd imagine.

If you received extra income that you didn't immediately tell your trustee about they probably feel obligated to collect that back for your creditors via an extension.

You could stop making your contributions I suppose, but the risk is that you'll be made bankrupt if you do which could involve making contributions for a further three years.

You might just be reunited with your debts, but that seems like a waste of some/all of the contributions that you've made already?

I'm supposed to be doing this for 4 years, it's been a year so far.

I was initially refused bankruptcy when I was on minimum wage, due to having higher outgoings than income (isn't that the whole point?). Now I earn an okay wage and they accepted me on a trust deed but I'm really struggling, often unable to eat at the end of the month, dealing with an ancient car that needs constant repairs and last month I made excuses not to attend my aunt's funeral because I couldn't afford appropriate clothing. Despite this, I recently got some overtime at work which went towards car repairs and now they're demanding an extra £90 every month!

The worst of it is that my debts were ignored for so long whilst I worked for a pittance that they went from £7k to £20k just with late/missed payment fees and interest.

I initially signed up for my trust deed with a cowboy who requested two monthly payments of £200 before the trust deed started, I didn't pay it. He also wanted £25 extra per month for the duration of the trust deed for consultancy and then I found out he was getting paid £800 from my contributions anyway!

I actually feel like giving up, almost suicidal now. The whole thing is a scam and I would warn anyone considering it to think again. I'd prefer to be "reunited" with my debts than live in abject poverty under the constant invigilation of the trustee.

Hi AnnaS,

When you first discussed your financial difficulties all of your available options should have been explained to you. These are normally a Trust Deed, Debt Arrangement Scheme and Sequestration. Can you remember if this happened?

A Trust Deed writes off a proportion of your debts and you normally make a minimum contribution for a period of 3 years. If during that period your circumstances change i.e. you receive extra income then it's possible that your contributions would increase in order to repay more of the money that you owe. As you received extra income by way of Tax Credits then your Trustee has taken the decision that you could have increased your payments and therefore is proposing to extend the term.

I would give your Trustee/Relationship manager a call to discuss this. It may be the case that even with the extra income from Tax Credits it would have been difficult to increase your payments as your expenditure could have changed.

It's disappointing to hear how your case has been handled Untrustdeed before you entered into it. People should not have to pay any set up costs or ongoing consultancy costs to enter into a Trust Deed. Who was it that refused your Bankruptcy? Was it the Accountant in Bankruptcy?

I'm sorry and disappointed to hear that you both feel your Trust Deed's are a scam. If a Trust Deed is set up correctly and for the right reasons then they can and do work. Regularly people post about their positive experiences and how they have completed their Trust Deed and are now debt free.

Hello Untrustdeed.

I do hope you follow the information and suggestions in your previous thread to help resolve the situation with the level of your contributions.

Who refused you bankruptcy?

Hi Annas

If as you suggest, you have additional expenditure which makes the payment balance out, then I cannot see how they can justify an extension.

I think you should write to your trustee explaining the position and outlining any additional expenses.

Mark

I filled in details on the CCCS website, followed up with several phone calls regarding bankruptcy. I was informed that whilst my expenditure exceeded my income, they could not proceed as I was making extra money cash in hand on the side. My then partner entered into bankruptcy with no repayments and higher initial debts than me, so I spoke to the lawyer who assisted her with that and he said I earned too much, yet had no surplus to contribute so he recommended me seeing a debt specialist. I gave up, since the CCCS couldn't help: I was stuck.

I then got a decent job a year ago, went straight for advice on my debts since I could now afford to pay something towards them. The advice I got was from an acquaintance whom I had done some work for and it consisted of "Yes. A trust deed is the way to go, give me your financial details please".

A week later, I got an information pack stating I pay £225 per month for 2 months then it "reduces" to £195 for 48 months. First two payments were £200 direct debits to the cowboy plus an ongoing separate £25 DD to him, then following payments were £170 standing order to the trustees.

I was ready to set up the required payments then I started noticing spelling and grammatical errors all over my paperwork, mostly in the terms and smallprint. I decided on that basis not to pay him for his shoddy paperwork and let the trustee deal with me. He warned me against this, saying if I don't know what I'm doing they could take more money from me, and that they are "the enemy". I just set up the £170 and forgot about him.

I retrospect, perhaps I should have just paid him. Now I'm struggling as I said but that's okay - that's what I signed up for. What's not okay is that they can just demand more and more. Maybe the "cowboy" would have saved me from this?

I spoke to the trustee and they want more payslips and bank statements. Now it's just going to look worse, since I got £300 overtime last month and my plight will just look like a series of excuses to them since I paid £60 fine for driving with no MOT, £180 for the MOT and repairs and I'm now having to visit my mother in hospital every night so my fuel expenditure has increased significantly.

After speaking the trustee on the phone, I get the impression that they don't want to hear excuses. Meanwhile I've been starving myself to keep my car legal and visit my mother. What's the point of it? This isn't living, I shouldn't be suffering, starving and depressed.

I said to them on the phone I had additional expenditure and they just snapped "you've already filled all expenditure rows except life insurance". So they're not interested. I'll have to send the details in writing but I have no expectation that they'll be suitably considered.

I'm swinging from utter depression to anger right now. I feel like paying them a surprise visit, I need to get away from the computer and take my mind off it.

Hi Untrustdeed.

I think had you made a LILA application for bankruptcy at the time that you initially spoke with CCCS the chances are that it could have gone ahead. Undeclared cash earnings (assuming they were undeclared) are always going to be a complicating factor though.

In terms of the individual that you describe as a cowboy, it's hard to disagree. There's no need for anyone to pay this type of upfront fee, or ongoing fees, or to deal with anyone that makes a ridiculous statement such as a trustee being "the enemy" (unless he actually had personal doubts about the trustee that he was recommending to you - which would be even worse).

Once the review process has been finished ask for a copy of the "income and expenditure" that they have based it upon. If you want to run aspects of it by us we'll be happy to tell you whether it fits within creditor guidelines or not.

The statement about the trustee being "the enemy" did seem a bit ridiculous at the time but now I see exactly what he meant.

If they don't drop the ridiculous demand for an increase, what happens next? I certainly won't be paying it and in that case, it would seem that I might as well just stop paying at all since I'd be put back to square one for non-compliance?!

Hi Untrustdeed.

It's difficult for anyone here to comment on the fairness or otherwise of the increase that's being asked for because we know nothing of the figures.

The amount should be affordable though, with your bills covered and reasonable allowances being made for other types of expenditure.

That's why I'd focus on this side of things for now in the hope that everything can be kept on track.

If you fail to make the payments that are deemed to be reasonable you might be left with your debts again (effectively the trust deed being failed) or you may be made bankrupt (in which case a trustee will assess your income and expenditure and require you to make a payment that they deem to be affordable for a period of three years).

So if I am "made" bankrupt, they take affordable payments from me for 3 years.

The situation just now is that I've been paying all I could afford for a year and now they're trying to take more for the next 3 years and from what I'm seeing they have a habit of extending it too.

I think I'm going to cancel the standing order and see what happens.

If I die, will my wife get saddled with my debt?

OMG I feel sick.

Sorry AnnaS for hijacking your thread. It sounds like you're past the point of no return, at the mercy of the IP until they decide to set you free. I could probably just quit it now though.

No, your wife would not become responsible for the repayment of your debts Untrustdeed.