Hi derelict

the simple answer is no. The Trust Deed is legally binding on you, the Trustee and the creditors. To repay the creditors as you describe would take payments in the region of ?ú1,300 per month.

The only way to bring it to a close is to pay the debts in full ( via the Trust Deed) plus interest on the debts, plus fees of the Trust Deed.

Mark

So what's going to happen then? let's say that from now on I'm able to afford some extra ?ú1000 a month, and my IP says everything needs to go to the TD... Am I going to pay ?ú36000 or more for a ?ú16000 debt???

I assume you have faced a similar situation before? What's gonna happen? Right now I am contributing ?ú225 a month with a ?ú1100/month salary, and my next salary will be in the region of ?ú2200-?ú2500/month

Hi derelict

no, the Trustee will continue to take the '?ú1,000' payments until there are sufficient funds to pay all creditors plus interest & costs ie 20 payments, 21 payments etc.

Hopefully throughout that time he will pay interim dividends to limit the interest.

Mark

it is a tough decission then, I am offered a good position in London, and after splitting with my partner I was thinking of starting a new family with my new girlfriend and now I can't...
I'm gonna be, in a way, forced to repay debts faster than anybody else... isn't there a medium point?

Another question, and sorry to keep asking... ok, if I ask my friends, parents, for the whole ammount of the debt + interests... how much is going to be the costs of my Trustee? Wouldn't the ?ú1000-1500 I would have paid by the time be enough?

Hi derelict

I don't understand your point about being forced to pay quicker than anyone else. The debts were incurred by you and are your responsibility. The Trust Deed is a vehicle designed to alleviate the pressure from creditors and, in 99.9% of cases, allow a large portion of the debt to be written off.

You would need to ask your Trustee for the fees to date and a figure for the work closing off the Trust Deed.

Mark

My point being that for instance, half of my debt was a loan with 40 months remaining until its completion...and I just haven't paid for 3 months so far...

And please, if you read carefully, I am not trying to walk away from my responsibilities, just the opposite, I want to pay everything back to the people I owe it...

You didn't answer if ?ú1000-1500 would be enough for my Trustee fees after only a few months.. roughly, or let's say ?ú2000... just some orientation, because I'm feeling some obscurantism here and being attacked just when I am trying to do the right thing...
I'm feeling there is an important point in the TD agreements, the Trustee fees, and we are NEVER informed about these conditions, and if suddenly you have good luck and want to meet your responsibilities (as you have reminded me) you realise you have a new creditor...

that's my point, anyway, don't answer to me, I've felt insulted enough already, it's okey, at the end of the day, it's all my fault, I assume it... it's quite sad indeed

Hi derelict

I did answer your point on fees. I have no idea of the level of work carried out by the Trustee and his staff to date and unfortunately cannot provide any guide on this. Your Trustee is the best person to speak to regarding this. He should quite easily be able to provide you with a figure to date and a fee to close.

I am unsure what you mean by a new creditor and assume you mean the Trustee's fees. I assume the fees were detailed on the proposal to creditors which you should have received and would guess that if you were to clear all debts plus interest at this stage, then these fees will be drastically reduced. But this can only be clarified by your Trustee.

Mark

Hello derelict,

Firstly I'm sorry to read that you feel attacked and insulted by the replies in this thread.

Having read it, and having known Mark for a number of years, I can only tell you that you have misinterpreted the both the spirit and the content of the information provided. As we all know this kind of minsunderstanding can be a danger with written communication compared to verbal and face-to-face contact.

The "medium point" that you would, very understandably, like to find simply doesn't exist. If you take the new job you do stand to bring your Trust Deed to a significantly earlier conclusion which is a benefit to both you and your creditors. It would obviously help you to move forwards with your personal priorities sooner as well.

You asked about getting help from friends/family in your April post on this forum as well and this option certainly remains open to you. Your Trustee will be able to give you a good guide to their fees if this were to happen (fees can vary widely between firms... no-one here can tell you how much will actually be enough specifically for you and your case).

The fact that you wish to take responsibility to repay your debts as best as you can isn't being questioned. You would not have signed a Trust Deed and you would not be asking these questions here if you were not trying to take responsibility.

Anyway... I wish you well in your decisions about both your working future and also your personal plans for the future.

Please excuse my words, synonym of impotence...
What I meant with a new creditor was the Trustee of course, you're always told their fees are included in what you pay as part of your agreement, but you're never informed of how much that would be.... at least in my case, a few months so far with one of the most reputable companies... I haven't received a single document...

and it is a new creditor because, for that people lucky enough to be again in a position of repaying all the debts, I fear that, apart from paying the full ammount + interests, you get quite a huge huge huge bill...from the trustee...
and that's why I said obscurantism, and it is it is really frustrating....

I guess your situation is very unusual derelict but irrespective you should have received a document which detailed the proposed fees... in which case they could not really be described as obscure. This information should also be easily obtainable now.

While I sympathise that you would not want a large fee from the Trustee, they do need to be paid for the work that they have done upon your instruction.

Creditors would prefer that the money that goes to Trustees to come to them, but they accept Trust Deeds (and the fees of the Trustee) because they recognise the value of the professional services that are being provided.

I agree TDA, and of course I value other's people work (as I like my work to be valued and recognised)... But, seeing that I'm not receiving even the minimum hint about the usual Trustee fees, I'm fearing that, if tomorrow I want to settle down all my debts, my biggest creditor would be the Trustee...

And you're always told their fees are deducted from what the companies receive, but it seems there is a case (like mine) in which you can end up paying a lot for their services (?ú2000, ?ú3000 ?ú4000????)... on top of your whole pre-existing debt.

[Final Questions]
Does it make any difference (for my future credit record) whether I repay my debt in full or not? Will it appear in my credit record that I've fully repaid my debts?

ps: if someone reads my other posts from the very beginning it is quite clear I always wanted to repay my debt in full (because I take responsibility, that's why I've go so upset before)... Thing is, that I expressed this willing to the representative (for one of the firms highly recommended here) that dealt with my TD at the beginning and he said to me "Yes, you can do that" (repay in full). But he never said to me "but please expect a huge bill from us". Maybe because it is a rare situation, especially on these times, but you should be warned about that very very very clearly, because even if it's rare I don't think it's exceptional.
Or any of the experts here, before the people sign the TD, explains to them the Trustee fees? I feel there's some kind of information gap here.

Hi derelict

I think the majority of IP's work on a time on line basis. If you look at the feeing in a case, the majority of work is at the start, say the 1st 2 months. There is the the ongoing work through the Trust Deed period but this should be fairly minimal and finally a fair bit at the end to do dividends etc.

My advice would be to get a figure from the Trustee and work on that basis to have the Trust Deed finalised asap. You always have the ability to have the IP's file audited by The Accountant in Bankruptcy if you feel the fees are too high.

I suppose the other factor which I think is slightly unfair in these circumstances is that the debts need to be settled in full, plus interest at 8% per annum. So my advice would be to act quickly as the interest continues to accrue.

Mark

Mark

Concise (and I think interesting) question:

If I want to repay my debt in full, which guarantee do I obtain that my creditors, every single gone, are going to receive my money???

For instance, at the end of a normal TD period, I have read the IP notifies the creditors about the money availabilty, but they need to actively claim that money. What does it happen if a creditor doesn't claim that money??? Where is that unclaimed money going?

I think it is valid point, if you are going to pay your debt in full, wanting individual confirmation from your creditors about that situation, don't you think?

Or should I contact every creditor in advance telling them "Please be aware that I'm going to repay my debt with you in full"?

Hi derelict

The trustee, on completion, sends a final dividend payment to creditors. If this is not cashed or there is another reason for non payment etc, the funds are consigned to the AIB.

Non of the above will stop the discharge of the Trust Deed.

Mark