Hello again sam21.

This is really going to come down to whether your trustee wants to try to capture this money for the benefit of your former creditors.

In short - some trustees are trying to re-open trust deeds to capture significant sums of money like this that (it could be argued) should have gone to creditors. They can only get reappointed if the court allows them to do so. You would not be in a trust deed again.

Other trustees aren't doing this - if you're lucky they'll either send this money straight on to you, or return it to the payment issuer with a note that they have no claim on it (in which case the payment issuer will likely forward it to you).

Thanks TDA, I think the company just want confirmation of me being discharged, I have read tinsoldiers post which was very interesting, mine is not anywhere near the money he is receiving, we will see what happens. Nice Christmas present all the same if it did come to me.
Many thanks.

It certainly would be sam21.

It's standard practice for companies paying out PPI claims to run insolvency checks.

Where they find that someone has been subject to insolvency proceedings, even if discharged, they'll generally approach the insolvency practitioner first.

This is essentially to protect themselves from the risk of having to pay out again later if they had sent the money to the wrong place and it could not be recovered.

That's perfectly understandable for them to contact my trustee, it does not look like its standard practice at the moment for the trustee to take the PPI when discharged, so I might be lucky.
Would the bank have found this out by doing a credit search as I should no longer be on the registrar?

I'd think that a credit search is quite likely sam21.

They might also keep their own records of personal insolvencies.

You may be one of the lucky ones, Sam, but I wouldn't get your hopes up too high - I think that it is getting quite likely now that many insolvency practitioners will be seeking to gather these funds in.

Hi sam21,

It would be a good time of year to receive a cheque for £4,000.

As others have said, your Trustee could decide to try and ingather these funds or they may not.

Have you spoken with your Trustee about this and if they would look to be reappointed in your case? A quick phone call to them could clear the uncertainty up for you.

Let us know how you get on.

Hi David,

It would be a good present! I would rather not call my trustee and let them sort it out between them, I sent the discharge letter recorded delivery and will call the bank later in the week. The bank apparently only want to know if I have been discharged and hopefully pay it to me.

Hi Sam21

Hopefully you will get the funds. What has failed to be mentioned is that trustees will charge a decent fee for gathering these funds even though they, and you, have been discharged.

Only a cynic would say that though.

I don't think you need to be a cynic to say that tinsoldier.

Insolvency practitioners, like almost everyone else reading this, don't tend to have the luxury of working for free.

I realise that TDA.

I wonder how much of the claim would actually go to creditors though.

I don't know the answer to that tinsoldier, but I'd guess it depends on how the trust deed was originally set up.

It might be the case that the insolvency practitioner is charging for their time plus the costs of the process.

It might also be the case that the insolvency practitioner receives a percentage of the recovery plus the costs of the process.

Because the costs are likely to be similar irrespective of the size of the recovery, I'd imagine that creditors would stand to receive a higher percentage of larger PPI claims/recoveries, and a smaller percentage where the claim/recovery is more modest.

I'm not sure that questioning the motive of a trustee that's doing this gets us very far though. Perhaps the first trustee to do this sensed a commercial opportunity - though I don't actually know this to be the case.

However, once the courts approve such processes for one trustee, others are increasingly likely to consider that they have no option other than to do the exact same thing. Failing to do so might expose them to negative scrutiny and/or financial exposure in the future.

Ultimately however this seems to come down to the courts and the law - if a court will not allow a trustee to be reappointed then there's nothing they can do. I can understand why people might be critical of a former insolvency practitioner that seeks to get reappointed - but if people think that the law that may enable this is wrong, perhaps it might be better to address that concern with their MSP.

It is also worth remembering that the trustee's fee level has to get the approval of creditors, who have a vested interest in ensuring that it is fair and not excessive as it would directly reduce the amount they get back themselves if it were not.

These days the fee structure is more transparent than it used to be too - the trustee has to indicate in the initial proposals how much his fee is for setting up the trust deed and then what percentage of any monies gathered he will retain for fees. This structure was put into regulations in November 2013.

I wonder whether a trustee being successful in being re-appointed is more down to the former trust deed client being spooked when he/she receives a citation from the court and not objecting?

I can see both sides of the argument to post-trust deed PPI, but really if trust deeds can be re-opened there absolutely is no finishing line for those entering into one.

As I said earlier, I feel this can really damage the industry.