Hi moneym

In general, yes, as you have not completed the proposal which was agreed by the creditors at the start of the trust deed.

This leaves the proposal incomplete and therfore the Trustee is unable to proceed with the discharge.

Mark

Welcome to the forum moneym.

You should still be in a position to deal with the debts.

Do you own any significant assets, like your home for example?

How much have you recently been paying each month?

Hi thank you for your replies. I lost my Job in 2007, 2 months after signing TD, have since been in employment however personal circumstances meant I could only afford £50 per month which I have been paying since. The original value owed to creditors was approx £30,000. I know 3000 isn't a huge amount however don't have assets to sell to cover this. Is it likely that creditors will pursue original debts.
Thank you for your assistance.

Hi moneym

Yes as the debts will never be finalised via the trust deed. Once the trustee discharges himself, creditors would be advised of the failure of the trust deed and the ability to pursue for the debts.

Mark

Can I clarify this then, moneym. You have been paying £50pm for 5 years and only now does the trustee say that this is insufficient? Why couldn't they tell you this at the time and save you 5 years worth of paying into a pointless trust deed?

Regardless of this, if you signed in 2007 then this was before the law changed - they cannot refuse your discharge as this only applies to trust deeds signed after May 2008. They would either have to allow your discharge or petitioning the court for your sequestration instead.

I think they might feel a little uncomfortable trying to justify to a sheriff why they have waited so long to apply for your sequestration when your circumstances changed so long ago, and it certainly doesn't sound like you have been non-compliant.

You should ask your trustee what the legal basis is for withholding your discharge. it will be interesting to hear what they say. If they quote regulation 19 of the Protected Trust Deed Regulations 2008 then they are on a sticky wicket as your trust deed was signed before then.

Thanks for your advice

No problem - let us know how you get on will you?

Hi again,

Regarding the last reply, does that mean they either have to allow discharge or they will apply for sequestration, or creditors can pursue for original balance? The letter states if I do not receive a lump sum offer I will withhold your discharge and your creditors will be able to pursue you for any balance remaining following completion of the administration of your TD. Forgive me if I repeating myself i'm just not clear on the best course of action to take. If I had funds available I would be more than happy to honour the original agreement. Additionally I would rather not have my credit rating affected for another six years.
Kind regards and many thanks

Hi moneym.

We're always a little reluctant to speculate what individual trustees might believe that they can or cannot do.

I think Kevin has provided you with this information to help you to challenge your trustee's currently stated position.

Doing so might push them towards altering their position in a way that you're happy with.

There is a danger that the trust deed administration drifts onwards with no conclusion.

You should always question why it has been administered without any chance of closure and keep on top of it.

Mark

Thank you again

Prior to the changes in 2008, there was no way of terminating a trust deed in the way that your trustee is proposing. The legislation change in 2008 only applied to trust deeds signed after it came in, ie not to yours.

That is not to say that your trustee won't just seek to do it anyway, though technically they shouldn't. Maybe you could point this out to them and insist that you have fully complied throughout and the change in circumstances was beyond your control. With a bit of luck they may agree to close your trust deed and discharge your from your debts instead,

I have spoken to my trustee and after checking with a manager they confirmed that they cannot withold discharge, they advise due to thid they would need to see if they would accept reviewed payments however may not be able to do this at current rate or apply for sequestration. Thank you for your help

I would try to keep pushing for your discharge, moneym. From what you are saying, you have complied with what they asked for over 6 years now. Why was this not reviewed much earlier and sequestration applied for back then? It cannot be fair that you continue to pay the reduced amount for so long and then are made bankrupt anyway - I think they are on very shaky ground here.