Hi kenny0307 and welcome to the trust deed forum.

I'm afraid that this is the case.

The PPI payment is treated as a windfall for the benefit of creditors in addition to the monthly payments that your partner has agreed to.

The end result will be that her creditors will receive back a little more money from the trust deed than expected towards the amount that they were each owed.

thank you

Hi Kenny

It's becoming more common for trustees to pursue these. Any monies paid out will go to the trust deed and is completely separate from contributions or other assets.

Mark

i have been in a trust deed for just over 2 years and cant welcome the end of it quick enough!!! i was paid a £1500 bonus last month which is a 1 off payment and only if my company achieve its business target. is the trust deed entitled to all of this? i also looked into PPI and so relieved i wasnt owed anything. i feel i cant even apply for new jobs with better prospects and a better income, there is just no point 🙁

Hi nells99.

You'll need to ask your trust deed firm whether some or all of this cash has to be paid over to help repay your creditors.

We encourage people to arrange a split on extra earnings in advance of starting their trust deed. If that hasn't been done you're really in the hands of your trustee who would certainly be entitled to seek the full amount if they chose to.

There would certainly be a benefit to finding higher paid work in advance of the end of your trust deed in terms of your position afterwards. I wouldn't pass up a good opportunity if it came your way.

TDA

thak you for the quick response, as you say im in the hands of the trust deed and fear the worst as it is "their way or no way". i was given the advice today to extend my TD to cover this, i have already extended the TD by 2 months,at this rate i cant see a positive ending or an ending to that matter,i explained to my trustee today i am practically on knees and couldnt possibly pay more. when i took out the TD i was given the advice to take out their life insurance policy which i did. is this the norm for people taking out a TD?

We've heard about that a few times nells99, but only in connection to two firms that I can remember.

There is no compulsion to take out life cover connected to a trust deed. I'm sure its a wise purchase for some people, and I'm also sure that its a great earner for the seller.

sorry maybe i am being a bit thick but life insurance for what? the actual trust deed payments?

Hi cal.

Some people may find that even if they have existing life insurance the way the policy is written could mean that in the event of their death the payment went to the trust deed rather than the intended beneficiaries.

For that reason, or if you have no life cover at all, thinking about life insurance before a trust deed could be a good idea.

A couple of trust deed providers appear to have identified this and offer (perhaps through linked firms though I am not sure) life insurance to clients considering starting trust deeds.

If it's done properly it could be a valuable service to clients and their potential beneficiaries. Life insurance is also typically a very lucrative product for the seller.

I think TDA has it the nail on the head. It would be interesting to see which company or 'associated' company sold the insurance.

I think the most an IP firm can do is look at insurance as part of the income and expenditure review and if it appears the figures may be high, then advise that you look at this. Certainly not advise that they or any associated company will provide insurance for you! Again, where is the impartiality in this arrangement?

Mark

I know of people who have been persuaded to switch insurance provider as a condition of the 'introducer /packager' being able to arrange for (lower)payments to be spread over 48 months- in bankruptcy.
It was openly stated as 'otherwise there's nothing in it for me'

I didn't feel it was a comfortable association financially and have insurance already written in trust.

I think so many people have a positive relastionship, partnership with their trustee, it's a shame when some come across as the estate agent who can arrange everything from removals to redecoration - for an agreed fee from the provider. It's not that people in related businesses can't advise or recommend. I just have less faith in a recommendation which is paid for.

nells99

I never meant to give you concern over your insurance policy, if you never had it in place, it was certainly advisable to do that!

The provider of insurance, I believe is not necessarily your trustee or associate but can be if you choose.

All

From the beginning of my trust deed I have had so much incorrect information. I was told that mt payments per month would be £300. If I took out life insurance at £62 then i would only pay £238 to my trust deed . I have been badly mistreated and so much is now coming back to bite me in the backside now ,!!!!!!!. I have nothing to prove that I was told otherwise ! However if my trustee is going to increase my payments due to the bonus that I recieved I have know alternative to cancel the policy. I am absolutely gutted at being so naive when it came to signing a TD 🙁

I can't speak for everyone but the biggest hindrance we had before realising the forum was here, was our own embarrassment and discomfort with the options we knew we faced. We also had some bad advice from a well meaning but incompetent advisor, some wrong advice from a middleman/introducer and some crooked advice from a referrer.

I consider myself fortunate that I had two friends making similar decision and once we were aware of each others' situations, there were several 2 hour long discussions comparing notes on discussions with advisors and somehow through those discussions we discovered the forum here.

It is so difficult to put your head on the block-as it feels at the time, that to do it once is enough of an effort to make you wary of going to see someone else.

This is where a lot of folk seem to get stuck with whatever the details of the service provided by the first contact they have, the idea of having a choice or making comparisons is a luxury when you're not feeling 'empowered'

That doesn't make you naive, or gullible, just temporarily too willing to let someone else be the expert.