is it possible for me to contact the original debtors, negotiate with them and pay off my debts to them directly , pay the trust deed company their fees and be done with it ?

Hi dixie33.

When you entered the trust deed all of the parties (you, your creditors and the trustee) became bound by it. As a result I'm afraid that you cannot come to direct arrangements with your creditors now.

The principle of a trust deed is that only debts which cannot be repaid will be written off. If circumstances improve, perhaps as a result of receiving a lump sum, creditors do stand to be fully repaid.

If circumstances improve sufficiently then creditors may receive interest as well. This is deemed reasonable because you will have agreed to pay interest when the money was borrowed and have later found yourself to be in a position where it can be paid.

It's also deemed reasonable that you cover the fees of your trustee if you're able to, rather than the creditors being asked to receive less than they would have otherwise.

I can't presume to know why the letter would be worded as it has been, but I would assume that at the absolute least you'll receive the statutory element of the redundancy payment to buy you some time to find new work. You're correct that we've heard regularly here that this is what should happen.

im quite happy to pay off my debts with interest pay the fees im due but can they legally take more than that from me , why cant they calculate all that and give me a figure instead of me putting a proposal to them

I suppose that they could calculate a figure for you dixie33. Why not ask them to do that?

Remember that it's a slowly moving target however as interest will mount up over time and further work for the trustee might increase their fees.

Hi dixie33,

Your Trustee should be able to calculate the total amount of money they require from you to close the Trust Deed and pay creditors in full, plus statutory interest and all of their costs.

Do you know much of a redundancy package you will receive and the breakdown of this i.e. the statutory element and the enhanced part?

yes my statutory is 8'425.50 , am i right in saying they cannot touch this ? the redundancy payment from my work is 10'784.64 and there is a payment of 4'044.24 for 12 weeks notice . my original debt is 10'403.00 the fees to the trust deed are 5'039.00 , i will have made 18 payments to the trust deed of 140.00 totalling 2'520.00 by the time im made redundant ,all i would like is a straight answer as to what i will have to pay out so i can get my head around it

I think you should run this directly past your trustee dixie33.

There are a few things we simply don't know and which you'll want to know.

For example, will your trustee reduce their fees given that they'll be supervising your case for a much shorter period than they originally expected to?