Welcome to the forum TRUSTDEED69.

If that money was received during your trust deed it will almost certainly have "vested" in your trustee. In laymans terms, the money would not have been yours to spend.

Your trustee is likely to look to recover that money from you, though other consequences are also possible.

Thanks for the reply.

Well the money was spent repaying loans to family which i was told could not be included in the trust deed. That aside, it seems the debts have been sold on to max recovery ltd anyway - who are a predatory company who buy up debt from ivas,tds etc for next to nothing and hope for a return.

You mention other consequences - can you elaborate?

Hi TRUSTDEED69.

I'm not sure that predatory is a fair description for Max Recovery. For anyone that completes their trust deed or IVA it makes no difference whether the dividend goes to the original lender or a debt purchaser does it?

I think the most likely outcome is that you'll be asked to repay this sum, probably through an extension to your trust deed. In more serious situations (where a trustee considers it to be appropriate) it might be the case that the trust deed is ended without the debts being discharged, or even that the trustee ends the trust deed and then seeks to make the individual bankrupt. These would be much less common outcomes.

How much was the sum received? How much have you being paying into the trust deed each month?

Thanks...

Re Max Recovery, well they are a bit predatory, or maybe 'vulture-esque' might be more apt - the whole finance industry is tbh.

anyway thats off on a tangent. Bankruptcy wouldn't be the end of the world - tbh a trust deed is pretty much the same thing anyway - for all intents and purposes. Except, really you dont have a company taken 70% of your payments for their ''''administration''''.

See maybe this is twisted logic but if PPi was a big part of why you got into debt in the first place and then the same institution repays your ppi because it acknowledges it was mis-sold then it is a bit pervese to then give that money back to that same mis-selling institution?! no?.

The credit system is a trap, especially for the young and naieve. One thing I have learned is this. Avoid any form of credit like the plague.

The problem with bankruptcy is that you'd be starting again TRUSTDEED69. You'd be asked to pay over your disposable income for a further three years.

There is an element of justice with the PPI issue when you look at banks (and others that sold PPI) individually rather than collectively.

Those that mis-sold PPI have to pay it back and will not profit from it. The other creditors (that did not mis-sell PPI) of the trust deed will receive more of what is owed to them back.

It's important to remember that certain financial institutions were much more culpable than others in this PPI mis-selling scandal.

I don't think anyone will disagree with you that the world of debt and credit in the UK is full of tricks and traps.

Well..i could see your point about PPI, if it wasnt for two things. One being that the wicked mis-sellers of the PPI are by a long way my biggest creditors. So based on how the dividends get err 'divvied' up they would get the lions share. As said that is perverse lol.

Also secondly, trust deed companies as mentioned do like their cut too, ranges from 40 - 75% for their administration fees. Now I must apologise if I am being harsh here, but why should I care, morally this is, that either the big bad creditor or the snatch grab trustee aren't going to quite get back as much as they thought. Morally - i feel much better that the money was used to pay back family members who had waited 3 years and were experiencing financial hardships themselves, coz guess what - it helped them and morally it was the right thing to do.

Also, with bankruptcy/sequestration you can be discharged within a year - especially if ,like me, you have no tangible assets and very little money. ta.

You're right that trust deed firms charge for their work. They are fees that you and your creditors voluntarily agreed to. That's not really a snatch and grab is it?

The work handling bankruptcy cases is also charged for and collected, where possible, from the contributions which are required where they are affordable.

Discharge from bankruptcy does happen after a year, however the trustee can determine that you continue paying towards your debts for a further two years after that and will do so where disposable income exists.

For modest sums I doubt that they'll bother, but a trustee might seek to recover money from family members where it has been distributed to them in contravention of the terms of a trust deed.

A trustee may also refuse to discharge you from a trust deed until all obligations are completed. Bankruptcy will not be available to you if this happens.

I have no argument with the moral decisions that you have made. You've done what you think is right. As its a forum and you've raised these points it is my job to answer them and point out the contrary view (which isn't necessarily my view). Hopefully the information is useful to you, and if not I hope it will be useful for other readers.

The insolvency practitioners are just doing what has to be done by law , trustdeed69 - like it or not their primary role is to gather as much funds as are available to distribute to creditors. Of course there are costs involved in doing this and that is why trustees will make an agreement with creditors as to how much they can retain to cover these costs. At the end of the day however it is the creditors that are bearing these costs as they are getting less of the money back which they are owed.

The PPI issue does complicate matters slightly. I agree that if the fact that you were missold PPI in the first place was a contributory factor to becoming insolvent, then it does seem a bit unfair that creditors will get some of this money back. I suppose that it may be possible to make a claim for damages against the banks in question, though I guess that may be expensive and I have no idea if you would be successful. However, it is not the trustees job to decide whether you deserve some kind of compensation for becoming insolvent as a result of missold PPI and nor should it be.

Regarding your family debts, again it is clearly stated in law that you should not prefer any creditor of others whilst insolvent, so your trustee cannot allow lump sums such as PPi reclaims to be paid to your family exclusively. I think it is great that you are keen to repay your family debts in full, but this cannot be done to the detriment of other creditors and has to wait until after you are discharged.

Sorry - I really do sympathise with your feelings and I can understand your sense of injustice regarding PPI. All I'm saying is that your trustee has no choice but to seek this money