What a kick in the nuts if that is their approach and you have met all their requirements during the past 3 years. I don't think the time span for discharge is set out in legislaton but just a "best practice suggests 6-8 weeks".

And where did the 12 months delay come from?

Hi beeder

There is no legislation or guidance as such. That said I think it is unacceptable for any firm to start chasing these things when the 3 years is up. After all, firms have a 3 year window to pursue these.

Mark

Hi beeder and welcome to the trust deed forum.

A number of trust deed firms are looking into whether PPI claims could help increase the dividend paid to creditors as part of a trust deed. I think more firms will start to do this in the future, and don't really see a problem with it in principle.
Leaving it until all contributions have been made seems crazy though, and I hope you aren't unduly delayed in being discharged.

I doubt you'll be looking at 12 months. If there is no PPI there is no reason for it to take this long. Even if there was, claims are now moving much quicker than they used to.

I'm not sure that it's a case that you can demand discharge and expect to receive it. I think it's more of a case that firms are now in a position to discharge someone if they choose to while continuing with a PPI claim connected to the trust deed.

Hopefully Shona, Kevin or Mark can provide a little more of the detail you'll want about this to be able to advance your case again.

Hi Mark,

I think we were writing at the same time.

I can remember a thread along the lines that beeder mentions recently being on the forum. I'll try to look for it but does it ring any bells at all for you?

Hi Trust Deed Assistant

The only thing legal bit I can think of is that if the Trust Deed was post April 2008, then there is nothing whatsoever to stop them discharging the individual while they remain in office to do whatever it is they have to do.

Mark

I think that is the information beeder was looking for Mark. Thank you.

This seems to be being challenged by beeders trust deed firm. Are you able to explain the basis upon which they can do this? Does it relate to a change of rules or legislation around that time for example?

Hi both

Yes the Protected Trust Deed Regulations came in in 2008 to set out the new rules. I think this is a very important part of the changes and applies to post April 2008 cases. It's something we stick to strictly where a case has ran for the 3 years and there are no matters to be finalised.

It basically allows for an individual to be discharged, while the Trustee remains in office to tidy up the things he should have done in year 1, 2 or 3!

Here you go, Chapter and Verse.

Discharge of the debtor
19.ÔÇö(1) Subject to paragraph (2) and regulation 20 below, a debtor will be discharged from all his or her trust deed debts and obligations contracted by that debtor, or for which that debtor was liable at the date that the trust deed was granted, if the following conditions are metÔÇô
(a) the trustee under the protected trust deed makes a statement that to the best of the trustee's knowledge the debtor has met the debtor's obligations under the trust deed; and
(b) any notice of inhibition under paragraph 2 of Schedule 5 to the Act has been recalled or expired.
(2) A letter of discharge does not discharge the debtor from any liability arising after the date on which the trust deed was granted or any debt which would be excluded from a discharge under section 55(2) of the Act, nor does it affect the rights of secured creditors.
(3) If the conditions in paragraph (1) above are met, the trustee must sendÔÇô
(a) to the debtor a written letter of discharge in form of Form 5 set out in Schedule 1 to these Regulations from the trust deed;
(b) to the Accountant a copy of the letter referred to in paragraph (a) above for recording in the register of insolvencies.
(4) On receiving the copy of the letter referred to in paragraph 3)(b), the Accountant must forthwith record the debtor's discharge in the register of insolvencies and the date of registration
will be the date of discharge.
(5) If the trustee decides not to grant the debtor's discharge, the trustee will inform the debtor in writing of the fact and the reasons for so deciding and that the debtor is accordingly not discharged
from the debtor's debts and obligations in terms of the trust deed.

So the point is that there is no reason to delay your discharge until the PPI thing is investigated, beeder, as Mark has said. You have fulfilled your obligations and as such should be entitled to expect your discharge as soon as possible. If they want to claim PPI back then they can try to do so after you are discharged if they like, it just means that your trustee will not be apply for their own discharge until that avenue has been exhausted.

Hi Kevin (and all)

I'm amazed that firms do not appear to know this.

The Trustee has an obligation to the creditors, however he also has an obligation to the individual as well and this is not being adhered to.

If I were you Beeder, I would write quoting the above and point them to the section they requested and demand discharge immediately.

Mark

So would a debtor be informed if the trustee was going to stay in office,after the debtor has been discharged?

I assume that no windfalls could be captured after the debtor discharge date,even if the trustee stayed in office? Its just I plan to win the lottery a week or 2 after I get discharged and dont want to share it with my trustee!!!!

Paul

ps fat chance,havent even had a tenner for the last year!!!

Hello beeder.

Just because the person you spoke to didn't know about this it doesn't mean that the more senior people there will not (I'd actually assume that they would).

If you choose to write, as Mark has suggested, hopefully your comments will be reviewed by someone senior (I'd assume that they would be).

Hi Paul.

I've actually got a similar question for Mark, Kevin or Shona.

If you are discharged from a trust deed, but a PPI claim handled by the Trustee carries on (and they are not discharged from the trust deed), what obligates you to hand over the money if the lender inadvertently sends the PPI claim money to you rather than your Trustee?

What get sme on the whole PPI issue is who is it that is generating this search for bogus PPIs? If a debtor with a PTD had been missold PPI with a loan, that PPI is most likely to have been sold by one of his creditors so why does the debtor have to suffer (further) while the IP/whoever is verifying the position. I suspect Mark and others have helpfully set this out in earlier posts but the saga seems to continue ad nauseam for many. Shame on IPs who wait three years before exploring this issue: they know when acting for a debtor at the outset whether loans are part of the debt owing to creditors, so then should be the time for exploring PPI as an issue.

beeder

Thanks for your post. Its a "hands up" from me on this one I am afraid. We've made a mistake. If you give us a call then we'll get your discharge sorted as soon as possible.

I'll also make sure that we revisit this issue with my all my colleagues here in Glasgow to make sure this doesn't happen again.

Please accept my apologies.

Barry