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PTD... The trustee said they are going to adjudicate the case shortly

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(@lee-chepak)
Active Member
Joined: 7 months ago
Posts: 6
Topic starter  

Hello Advise please...This is all about PTD.

The debtor situation:

My trust deed has become PTD 3 years ago. all payments are up-to-date without any gaps as agreed at the time of signing of trust deed. i am at final 12 months to get discharge. my side no probs. i want to complete my PTD.

however we have new situation without my fault.

The trustee situation:

The trustee says their administration costs of the case, had become double now than they anticipated originally. if the trustee withdraws their costs from the account balance, then the dividends payout to the creditors will be 80% down  against the projected plan this is due to more number of claims/variations of debt claimed.

The trustee asked the creditors to approve the new administration costs.

if the creditors does not approve the new administration costs, The trustee said they are going to adjudicate the case shortly with a view of "the trustee may be resigned from the office", PTD will be terminated and they quoted saying " the situation will become the same where it was when there is no trust deed."

>>>

The above situation has happened without my fault. i agreed a fixed sum of monthly payments at the beginning and i am maintaining the same payments to the trustee every month without fail. This new situation is causing me worry especially trustee wants to resign during the final year.

 

please guide me what best can be done to improve the situation, thank you


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 15 years ago
Posts: 4212
 

Hi Lee.  Sorry for the delayed response due to the festive period.

In order for the Trustee to terminate your Trust Deed without your discharge being granted they would need to be able to assert that you have not complied with the terms of your Trust Deed.  Unless there are other issues that you have not mentioned yet then all I can assume is that this must be based on you not providing them with complete and correct details about your debts in the first place.

Perhaps you could elaborate a bit around this so that I can get a better understanding - how come there are more claims/different claims than first anticipated?

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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(@lee-chepak)
Active Member
Joined: 7 months ago
Posts: 6
Topic starter  

There is no my fault, I have complied with the terms of your Trust Deed.

All debt details provided correctly at first place. but there is another disputed debt has joined with in the first month of PTD.

Please note that PTD was running for over 3 years, i am paying my payments on-time. My point is if the trustee is not happy, then they could have failed during the first month or first three months of PTD. however the PTD was ongoing for 36 months since its we deed is protected.

 

how come there are more claims/different claims than first anticipated?

the answer for your question is i do not know as PTD going for 36 months. Last time i contacted creditors 37 months ago, since then no direct communication between debtor, creditor.

 

now trustee says they want to adjudicate the case soon.

i am losing 3 years if they terminate PTD now, Kindly  guide me, thank you

 


   
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(@lee-chepak)
Active Member
Joined: 7 months ago
Posts: 6
Topic starter  

Th trustee says their "administration of costs" have  became doble now compared to their initial estimate. as such they are asking creditors to approve the new costs/fees. the creditors have not responded yet. ( this is not my/debtor fault)

 

They agreed that i am paying PTD agreed premiums on-time, no gaps in last 3 years, they are okay on my part.

 

their letter further went on to say as 'administration of costs' doubled, if they withdraw their fees/costs fully, then they have less dividend to pay to the creditors. the new dividend is below of 80% compared to their original estimate.

 

because new dividend falls below 80%, therefore the trustee called for a meeting to adjudicate the case in the view of terminating PTD by in a way "the trustee resignation from the office", then PTD is terminated and asking the debtor to go for full sequestration.

 

My point is , whatever they say is not my fault (the debtor). if PTD is terminated in first one month or first 3 months, then i would have gone for bankruptcy at the time. the problem now is, i am already on PTD for 3 years, payments are made on-time for 3 years, there is no problem at me(the debtor), if they want to resign and terminate the PTD asking me to go for full sequestration is not fair at tjis stage of completing PTD 3 years.

 

case not adjudicated yet, but their letter says the case is being adjudicated shortly with the above details.

This post was modified 2 months ago 4 times by lee chepak

   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 15 years ago
Posts: 4212
 

If creditors reject the Trustee's request to increase their fees then the legislation states that they need to seek a direction from the Accountant in Bankruptcy instead, who will decide whether the increase is justifiable or not. 

If there is no fault on your part in all of this then the Trustee should not be able to just terminate your Trust Deed. If they send you anything suggesting that is what they are proposing to do then you have a chance to appeal against this to the Sheriff Court or you could speak to the Accountant in Bankruptcy and they can direct the trustee to take a different course of action.

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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(@lee-chepak)
Active Member
Joined: 7 months ago
Posts: 6
Topic starter  

Thank you


   
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