That's right Paul, our home was sold and we went into rented accomodation

I would be pushing for bankruptcy/sequestration but the ppi money may still be a stumbling block. If you were willing to lose the house before then it may have been a better option from the start. Was it ever suggested as an option?

Paul

The house was sold and was used to pay off the majority of the secured loans on it

And if it had simply been handed back to the mortgage provider was it explained what would happen to the secured debts?

Paul

They told me that the mortgage would be paid first then whatever was left would would be divided between the secured loans

And any shortfall?? I am not 100% sure but thought it became unsecured.

Hopefully one of the professionals will give their opinion soon.

Paul

Your right Paul the shortfall did become unsecured.

Not sure why sequestration wasnt suggested although if redundancy and illness etc came after signing the trust deed maybe the trust deed was the best bet at the time.

Paul

We personally feel that kpmg have not been that interested in us. They have never asked for any bank statements etc even after we told them about the redundancy. Which I found a bit strange.

Is it possible that they have discharged themselves? Have a look at the accountant in bankruptcy website and reguster yourself then look yourself up to see what it says? The TD may well have failed already if payments havent been made as expected.

Paul

Thanks for all your help Paul, I will look that up but I don't think we have been discharged because of the letter saing about being mis sold ppi before we discharge you.

No probs.

I think that if/when your trustee finds out about the PPI money they will ask for it to be paid over to them and as it sounds that this will not be possible then there is a good chance that they will refuse your discharge.

At this point you should be able to apply for sequestration instead. whilst it is possible that a bankruptcy restriction order could be sought against you (prolongs the term of the restrictions placed on you by the bankruptcy), I would very much doubt it to be honest.

In an attempt to try and sort out my debts (prior to trust deed) I applied to reclaim my PPI through Consumer Net (I realise now I would have been better doing it myself but that is another story!) This took a very long time and I then started looking into a trust deed. I was successful in all my claims but in all but 1 case the refund was simply subtracted from outstanding balance Leaving me with huge fees to pay consumer net! I received a cheque for about £4K from MBNA prior to signing Trust Deed and used that for paying consumer net fees.

About 8 months into Trust Deed, KPMG wrote saying they knew about this cheque and wanted it paid into trust deed. After several threatening letters they eventually accepted I did not have the money. They have not terminated Trust Deed (although I wish they would so that I could apply for sequestration) or taken any action against me.

Hi fcwalker.

Using claims firms certainly is risky when you're in debt to the firms that you're claiming from. As you've explained, even if a settlement is agreed it will often just be deducted from the debt. The claims firm, however, still see this as a "win" and want their share. Of course, no money has been received to pay them this.

Anyone who has been discharged from their trust deed may want to bear this in mind. You can make PPI claims, but some companies will seek to apply any settlement against the debt (even if that debt has already been written off as part of the previous trust deed). Once again, if you have used a claims firm you might have a big invoice and no new funds to pay it.

I guess your situation is quite different to the one described previously on this thread. Because the claim settlement was received prior to the trust deed there is no issue about having to pay it over to the trust deed. A trustee may quite rightly want you to account for where the money went, but so long as nothing inappropriate happened (like paying off certain creditors in preference to others, family for example) it really shouldn't affect the trust deed at all.