That's interesting tinsoldier.

I might be misunderstanding this, but it looks like it's proposed that the AIB takes on a role that is currently undertaken by the courts?

It does - but also stipulates a 5 year rule from sequestration date?

Hi everyone, I'm new to the forum and have a similar case ongoing at the moment, I was in a PTD from March 2005 discharged in late 2009 with my Trustee discharging not long after. In July last year I got a few letters from different companies telling me I am eligible to apply to reclaim mis sold PPI, I'd put it to the back of my mind for a few months but in November I got another letter from a company that had contacted me in July so I decided to give it a go, nothing to lose right? Just last week I got a letter from BoS who have upheld my claim and I was awarded just over £1900, I was delighted to read this, but the delight soon faded as I read on, BoS continued to say they had noticed i'd been in an insolvency arrangement and had made the cheque out in the name of the insolvency practitioner and sent it to them. So now I am facing the same wait to find out if my ex trustee is or isn't going to apply to the court to reopen my trust deed. I'll keep you updated of the progress. Any info or advice from anyone here will be most welcome.

Welcome to the forum GSteel27.

As you're experiencing, and as I think you've read here, there seems to be a bit of an impasse on this subject at the moment.

Please let us know about what happens with your case, and please also keep an eye on the forum as I'm sure developments will be reported here fairly swiftly when they occur in the future.

Hi GSteel27

£1900 is an amount I would hope you will receive; I don't think it would be worth a trustee approaching a court as once you take costs off etc creditors wouldn't receive a penny....

Actually, I think Kevin or David mentioned a payment threshold the AIB was using in respect of trustee reappointment for the same purpose after bankruptcy discharge tinsoldier.

I can't remember the amount - hopefully one of them can remind me.

Hi tinsoldier,

I agree, it's quite clear in the legislation that in a Sequestration that if an asset is discovered before the expiry of the period of 5 years from the date of Sequestration, the Trustee or the Accountant in Bankruptcy becomes aware of any newly identified estate with a value note less than £1,000 may make an application to be reappointed.

The relevant section for this can be found under section 21 (assets discovered after the trustee discharge: appointment of trustee) Bankruptcy and Debt Advice (Scotland) Act 2014.

The issue is that under a Trust Deed the legislation isn't quite so clear regarding this.

Under section 28 (sheriff's direction) of the Protected Trust Deeds (Scotland) Regulations 2013, it confirms the following:

Sheriff's direction
28.ÔÇö(1) Any person with an interest may at any time apply to the sheriff for a direction as regards the administration of the trust deed.
(2) A direction by virtue of paragraph (1) may includeÔÇö
(a)any order the sheriff thinks fit to make in the interests of justice; or
(b)an order to cure any defect in procedure.
(3) The sheriff to whom any application under this regulation is to be made is the sheriff who, had a petition for the sequestration of the estate been presented at the date the trust deed was granted, would have had jurisdiction to hear that petition in terms of section 9(1) or (2) of the Act.

The above is a little vague in my opinion as to when this application for direction can be made and under the circumstances of the PPI does it fall under ÔÇ£interests of justiceÔÇØ.

As we have advised it really needs to be played out before a sheriff. We could dig into the legislation all day long but ultimately it needs a sheriff to give a proper ruling on the matter and to take into consideration all legislation. This is where a good specialist Insolvency solicitor is key in matters like this.

With regards to the AIB applying to reopen Sequestration cases for funds, they advised that they could consider this if funds of at least £2,500 had been received or the funds were sufficient to pay at least 1p in the £. I don't think it would be in a Trustees interest under a Trust Deed to apply for £1,900. The costs would outweigh the benefit.

I think on this basis GSteel27 you may find that the Trustee forwards you the funds. Best to give them a call and chase them up for the funds. Do let us know how you get on.

Hi TDA and Tinsoldier, thank you for the welcome.

UPDATE

I have this morning received an invoice from my claims company. It states the service being a PPI compensation claim in the amount of £1954.36.
It includes their fee of 30% + VAT which will leave a total of £1250.79

It instructs me to keep the invoice safe and call them when I receive compensation. To check compensation agrees with compensation amount detailed on the invoice and if all good to pay their fee by bank transfer or cheque.

When I last spoke to them on the phone they already knew BoS had sent the PPI refund straight to my Trustee and told me if the Trustee decided to keep the refund then it would count as a loss not a win and therefor no fee would be charged. Not yet wanting to put the cart before the horse but I am assuming from this invoice arriving the Trustee has decided to return the payment with a note stating he/she has no interest in it?

Hi GSteel27,

A quick call to your Trustee and probably in the space of 5 minutes you will know if you are going to receive the money or not. I know if it was me I would be on the phone to them straight away asking what is happening.

The risk is if you don't chase them up it could sit on someone's desk and take weeks to deal with.

Not quite the 1.5 Billion someone in America won on the lottery yesterday but it could be the start of a good weekend if they tell you that you will receive a nice little cheque for £1,250.79.

It's also good to hear that the PPI company won't charge you a fee if you don't receive the funds. I've heard in the past of PPI companies still trying to charge the client even when the didn't receive the funds.

Let us know how you get on when you speak with your Trustee.

Mr Tannock, my apologies for not including you in my update, your post must have came on whilst I was in the midst of writing mine. Thank you for your information about the legislation on this.

Think from the terminology in the letter you are using the same claims company as me GSteel27!

They are going to fight in court for my PPI claim of £17,500 which BDO are holding onto in the hope of being re-appointed.

One question to maybe David - under what authority are BDO entitled to actually hold onto these funds? Not "because I would spend them", but under which authority?

Your welcome GSteel27.

I don't think they have any authority to do so tinsoldier but I do think they have a sound argument under the circumstances to hold onto the funds until the matter is resolved at court.

I could be wrong in this. It's perhaps more of a legal question rather than something that relates to Insolvency legislation.

if we were holding onto the funds under these circumstances I would seek advice from one of the Solicitors that we use to ensure that we could do so.

Perhaps a question for you to ask BDO in writing as from what you have said your experience speaking to them on the phone hasn't been the best.

Would an email to BDO suffice David?

Yes an email should also work.

Done.

Not the easiest firm to contact; only a limited character email box, but I think I got my point across.[:)]