Quick question - how can the compensation part of the PPI award b3 considered an asset at the time of the trust deed?

I suppose your Trustee would argue that it was compensation for something that happened prior to your Trust Deed being signed and was therefore a potential asset at that time.

Pretty poor argument seeing that the compensation is entirely separate from the PPI which existed.

Whatever way you look at it Trustees are seeking to be re - appointed for one main reason, and it ain't to the benefit of creditors.

Whatever way you look at it I guess tinsoldier? I can fully see why you'd take that view.

The way that plenty of other interested people are looking at it will be less clear-cut and more multi-faceted than your position however.

I've learned this evening that 2 of the loans involved in the £17,500 were secured on a house I sold prior to signing a trust deed. How can these be seen as assets?

Is this the fault of the Halifax?

Should have clarified - the secured loans were cleared when I sold the house in 2006. I signed the TD in 2008.

I'm not sure I follow you, tinsoldier. How can a cash sum of thousands of pounds not be seen as an asset?

The only issue here is whether the trustee has the right to seek to gather these funds in for your Trust Deed creditors despite you both being discharged. I think there are arguments on both sides, which is why it will ultimately need to be decided in court by a Sheriff.

Because the loans were secured and not included in the TD. They were cleared, paid off, ceased to exist any more. 2 years before I signed the TD.

The PPI compensation has arisen well after discharge as you say. How on earth it can be seen as an asset when I signed in 2008 really is beyond me. It didn't exist back then.

As I say, unethical and most likely illegal.

Hi tinsoldier.

I'm afraid it's not relevant whether or not the PPI relates to loans that were included in your trust deed.

What's relevant was that the potential to claim this money back existed at the time your trust deed began, which is an asset (the potential to claim - which did exist at the time) that your trustee might be expected to realise for your creditors. You made all of your assets available to your trustee when you signed.

The money may have materialised later, but that's not the asset here. It was the potential to reclaim the money that was the asset.

It's actually very common for PPI that accompanied settled debts prior to a trust deed to be later reclaimed for the benefit of the trust deed creditors.

What's more contentious, as Kevin explains, is whether your trustee can get the court to agree to reopen your trust deed to capture this money for your former creditors.

If you're correct that such a move might be illegal and unethical, then presumably you'll be victorious in court. If your judgment about the scenario is wrong in the view of the court, and it believes it's legal and ethical for the funds to be captured, then presumably you'll lose.

Thanks TDA - secured loans couldn't be included though, is that right? Or indeed Council Tax, but that's a different matter.

According to the BDO chap I spoke to, I may as well not bother objecting because every case so far has been re-opened. Maybe you know better than me if that's the case.

Hypothetically - if I found £10,000 in cash down an old sofa today I had when I signed the TD, would I have to contact my trustee and hand over the funds to them?

I'm going to choose not to get involved in your last question tinsoldier!

Loans secured on things you don't want to lose aren't going to be included in a trust deed. If you don't fully pay your mortgage, or a finance payment on a vehicle for example, the lender may call in their security and you'll lose the thing you want to keep. A trust deed doesn't mean that the lender loses their security.

Which debts get included in a trust deed is, however, a totally different subject to what assets might be included. Two totally separate things.

Council tax debts do sometimes get included in trust deeds by the way.

Thought you might - and I appreciate the honesty TDA. Similar situation though.

What was up with the forum, or was it just me? Thought I might have been banned for my contrary views.....[:D]

We've banned about 3 people in 8 years tinsoldier - you'll have to try harder than this!!

You're absolutely right - technical gremlins struck at around 6:30. Poor old us and our website expert friends have been sorting it out since then. Whinge over!

Hi tinsoldier I'm in same situation and I hope it is resolved. I totally agree with all your comments.