Welcome to the forum Jim1970.

Is it the case that your home hadn't been sold (after the repossession) when your trust deed began?

Hi there, my home didn't sell right away and they auctioned it off but it was within the first year of the PTD starting, They even got a 2500 PPI payment just after RBS put the claim in too.

I was told my TD would finish in december this year now they are saying its another 12 month taking the whole PTD to 60 months?

Regards
Jim

In theory, in the event a large claim from a creditor not previously disclosed to the Trustee was to be received, the Trustee could ask for an extension with a view to limiting the impact on the dividend creditors are likely to receive.

In this case, I think it would be very hard for Knightsbridge to justify such a request in that it sounds like they were aware of the repossession and should have taken into account the likelihood of a sale at significantly below value.

In the first instance I would suggest you send them a recorded delivery letter just asking them to put in writing the justifications of any such extension in order that you can seek appropriate advice.

Was the likely shortfall to RBS was disclosed and included on the list of creditors when the trust Deed proposals were made, Jim?

Hi Kevin & Voice of reason, When i signed the TD i was in the process of the repossession and Knightsbridge where informed at every step, i dont have a grip paying back what i can to my creditors it just seems Knightsbridge are drawing this out and with the fees they get they are the only real winners in it being extended.

I have arranged a meeting with them after speaking to my solicitor today who also agrees that the extensions should include a fee reduction to help raise the money being payed back to my creditors.

Regards
Jim

Hi Jim1970.

I think you're doing the right thing to try to get to the bottom of whether this extension is fair.

Can I please ask whether the eventual debt created by the repossession was much higher than either you or your trustee had initially expected?

Hi TDA, when i spoke to the initial company in Glasgow cant remember the name now (who passed my case to Knightsbridge)we discussed roughly what the figure could be including the arrears and potential sale figure which was way below the valuation, i believe the house sold for approx £40000 below that price so there was a fair bit outstanding.

At the time of discussion with the initial company and later with Knightsbridge i was told not to worry as the deed would been protected and any subsequent claim from RBS would not have a dramatic effect on myself.

Jim

Hello again Jim1970.

You'd have to confirm with your trustee, but I think they're probably trying to ensure that your other creditors aren't disadvantaged by this large RBS claim.

They were made an offer at the start of the trust deed which included an expected level of return to them. They presumably agreed to this level of return (or at least failed to object to it) in return for allowing your trust deed to become protected.

If RBS then put in a much bigger claim than expected, the potential level of return to the other creditors might reduce way below the amount that they initially agreed to. A trustee might consider that an extension would be one way to address this in their interests.

Whether the Trust Deed is extended or not is really at the discretion of your trustee, I'm afraid. The rules were clarified in this regard for Trust Deeds signed after November 2013, making it incumbent on the Trustee to advise creditors of the likely reduction in dividend and giving creditors more say as to whether the Trust Deed should therefore be extended to compensate.
Whilst these regulations are not binding on your Trust Deed, as it was signed before these changes, most trustees are likely to treat older cases the same and I think an extension to the term is a likely outcome for most people in this kind of scenario.

Hi folks, i have just been informed by my trustee that i will make my final payment at the end of January 😀 which i am delighted about, but they have also said that it can take between 6 and 12 months to complete the process after that due to procedures they have to follow ?. This seems a very long time to me can anyone shed any light on the average times to complete after final payment.

Regards
Jim

Glad to hear that it's all coming to an end for you Jim.

It wouldn't be useful to offer you an average timeline for the reasons explained below.

Once your obligations are complete your trustee will usually be in a position to discharge you. This is the most important event as far as you're concerned. Some firms get this done pretty quickly (weeks) but I'm afraid we do hear of others that can take a fair bit longer. There's no deadline or particular expectation in place for trust deed providers on this point.

After you have been discharged, and when your trustee has completed all of the work that they need to do, they can discharge themselves. This is usually very much less significant for you than your own discharge. This can happen a fair while after your own discharge.

Hi TDA, and thanks again, the advise on the forum has been nothing short of amazing, i just wish i had looked at it before i signed up, but hey ho was my own doing at the end of the day.

Only reason i asked about the discharge time was a friend of my was literally discharged within a month after his final payment, but like you said they are all different and mine seems to be one of the worst 🙂

Let's hope they're under-promising and over-delivering Jim.

Thank you for your kind words.

I can't understand why it should take 6-12 months for them to discharge you, Jim. Hopefully they are just referring to their own discharge from the trust deed though.