Hi TDA
Thanks for letting me know I'm entitled to see a breakdown of where the money ends up. I have not seen or heard of any Trustees not being reappointed as they know most people simply do not have the funds available to take them on in court. I only wanted to make the forum aware that some Trustees may not have a lower limit when it comes to seeking reappointment.

Tinsoldier - Funny old thing. My thoughts exactly!!

It would be interesting to put before a judge just how much money being gathered in by trustees in these re-appointments will go to creditors. If in a lot of cases it's simply the trustee obtaining fees surely the FSA could get involved?

Insolvency practitioners aren't regulated by the FCA tinsoldier.

Their regulatory professional bodies would likely take a dim view of activity motivated solely by fees rather than due regard being paid to creditor interests.

In the case highlighted here for £1400 nothing would go to creditors. Once the trustee fee, court fees and solicitors fees were paid anyway.

Probably best to be careful about such statements with a named firm involved tinsoldier.

You might be right, but what if you're wrong?

Perhaps one of our trustee contributors could comment on the sums involved and what they would do.

And it's all hypothetical seeing as said firm haven't been re - appointed yet.

All I'm saying is for that amount no creditors would see a penny whatever firm W's involved. I work with solicitors every day. I know what my firm charge a solicitor as a small part of an overall package provided by them. It's not cheap.

Trust deed providers are commercially minded firms. Of course they are going to grasp an opportunity.

Hi Tinsoldier,

As it stands are the moment we are not a firm which are reapplying to court to be reappointed in a Trust Deed so I can't say what the minimum threshold for us to consider this would be.

We are waiting on the outcome of the recent court cases and will then take a view on this.

I would say that in my opinion the sum involved should be enough to cover the legal costs, the Trustee fees but also provide a return to creditors. If the exercise didn't provide a return to creditors I do not think it would be appropriate to do this.

Any idea when the court case verdicts are due David?

No idea Tinsoldier.

Hi David
I am slightly confused as on page 3 of this post you stated that it was unlikely to be in a Trustees interest to apply for reappointment for £1900 as the costs would outweigh the benefits yet my ex Trustee is applying for £1400. I will request a breakdown of who gets what and let you know the outcome.

It's an emerging scenario tk333 - I suspect everyone's thinking is developing as they learn more.

Also - once there is more legal clarity and embedded processes exist at firms to deal with this the costs involved in handling an individual case may well fall.

Finally, some firms may simply take a view that they can handle this work for less than others and set their criteria accordingly.

After your scenario has reached completion it will be very interesting to hear to what extent the creditors benefitted - thanks for offering to share the details.

Thanks TDA. I think the lawmakers need to come up with some clear guidance quickly as there is for sequestration.

I'm not sure that guidance came from lawmakers tk333.

More likely a commercial and ethical judgement based upon the facts as known.

Trustees are likely to also make their own commercial and ethical judgements in terms of trust deeds they were (and might be again) responsible for.

Commercial judgements certainly.

Ethical - no so sure.

I did say their ethical judgement tinsoldier.

Which may differ between themselves, as well as with yours.