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Scottish Trust Deed Forum
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Topic starter
04/06/2010 7:36 pm
Hi, newbie to the forum just looking for advice on what happens next.
We are 2 years into a TD and about a year ago received 3000 from a firstplus PPI reclaim. We subsequently did not declare it and instead used the money to pay off some family debts we had. Now we know this is wrong and our bad deed is about to catch up with us. Today we received a letter from a solicitor acting on behalf of our IP stating that they wished to start proceedings to reclaim the PPi from firstplus, the PPi we have already used.
Now we know we need to come clean and we know what we did was wrong, what I dont know is what happens next? Obviously our IP is going to be annoyed, and rightly so. Will they just add this money to our outstanding sum and make us pay some additional payments or will their actions be more severe?
Any advice will be most welcome?
05/06/2010 11:49 am
Hello TD Veteran and welcome to the forum.
I cannot predict exactly how your IP will react to this news. As you have acknowledged you should have made your Trustee aware of the windfall.
There are issues connected with both not declaring the money and also having chosen to favour certain (family) creditors over the others.
When the experts next check-in to the forum they may be able to share some information about how they would view such a situation should it involve one of their clients.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
05/06/2010 5:15 pm
Hi TD Veteran
I wouldn't worry too much. The Trustee needs to recover any loss to the creditors and will almost certainly extend the period to recover the sum.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
06/06/2010 8:46 am
Hi All,
As you all may know my trust deed has just become protected, wayhay. But yesterday I got a letter from Northern Rock stating that they want to give me almost ?ú4,500 back as I have been trying to reclaim my PPI, I have to give the company who is claiming this PPI 1/3 back so this leaves me with a tidy little sum, therefore what happens, will my trustee want it all? Will I get any of it maybe for a holiday with my wife and 3 kids? I would think it would be only right to give Northern Rock it all back as they were the largest of my creditors with 20k owed to them. Any comments would be good. Also what is the minimum amount of these PPI claims that I get, ie some claims are ?ú350.00, do I need to tell my trustee about them, is there a limit where I dont' need to tell them. Sorry for all these questions on a sunday morning!
06/06/2010 9:30 am
Hi perston
I think you know the answer to this one. The payment is an asset which belongs to the general body of creditors and I would strogly advise that you notify your trustee.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
06/06/2010 9:34 am
Morning Mark,
I will be informing my trustee tomorrow about it, I think it is only right to do so. Would you know if there is a minimum amount where you do not have to inform the trustee, I seem to think they said it was ?ú500.00.
Many Thanks
06/06/2010 10:33 am
Hi perston
There is no legal or statutory minimum and any figure would need to be agreed with the Trustee beforehand. There is always an argument however that you have been up front and should retain some of the funds.
Good luck
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
06/06/2010 11:36 am
quote:
Originally posted by Mark McFadyen
Hi TD VeteranI wouldn't worry too much. The Trustee needs to recover any loss to the creditors and will almost certainly extend the period to recover the sum.
Mark
Thanks for the response.
