Hi again angusog.

I'm afraid this might not be the answer you were hoping to hear.

Your creditors accepted your trust deed in the first instance based upon you making 36 payments of ?ú250. It's generally the case that when trust deed contributions are reduced due to a change in circumstances that the term of the trust deed is extended so that the same amount of money is paid in total.

Of course this should all have been explained to you a long time ago and it's difficult to explain why it would not have been.

Your Trustee does have an element of discretion on this though so there would be no harm in trying to press your case when you clarify with him or her what your remaining responsibility will be.

Hi both

When a proposal is made to creditors, the proposal is for a set amount over a set period ie if the agreement is 36 x ?ú250, then creditors expect ?ú9,000.

There is a thought that all that is required is 36 payments of whatever the amount, but the fact is they require the agreed total. Where there are reductions, the period required to be extended to cover the shortfall.

Mark

Thanks for your replys. I am very angry about this and feel I have been let down by my Trustee. Is there anybody I can complain to? Would we be better to consider Bankruptcy ?. We are both on very low incomes and I recieve Pension Credits. We have a mortgage but it has been calculated that there is no equity in the property. It will take us another 10 years to pay back 9000 pounds.

Hi angusog.

Trustees are responsible to their professional bodies. You'll find the appropriate details at the bottom of letters that you have received. If you do complain please remember that the extension of trust deeds when the agreed payments can no longer be kept up is normal. Clearly you should have been notified that this would be the case, but you do not seem to have suffered any financial loss as a result of any extension.

Bankruptcy may be an option, but only once your trust deeds have ended for one reason or another. It isn't an option open to you at this time. Your trust deeds may end if your Trustee deems that the trust deeds have failed and decides to sequestrate (bankrupt) you. They might also end if your Trustee were to resign from your case.

If you do not feel that you can continue to make the contributions required for your trust deeds you may wish to discuss the option of bankruptcy with your Trustee.

Thanks again. We will just have to wait for our Trustee to get back to us. I will keep you posted.

Hello angusog

You mention that it would take another 10 years to pay off your trust deeds - clearly this is not a reasonable solution for you. I think there is a good case for a compromise here whereby it is agreed that the trust deed be extended for a fixed period before discharge - say an extra year or two if necessary. If your trustee is not willing to consider this then maybe a complaint about there lack of communication earlier would be worthwhile.