Hello zed01 and welcome to the forum.

I'm afraid that this might not be the answer that you were hoping to hear but you committed to an amount to be paid as well as a payment duration.

The agreement with the creditors was that you would contribute 42 payments of ?ú250 to the Trust Deed. This totals ?ú10500. Effectively this is the arrangement that the creditors agreed to.

As your monthly payment has reduced KPMG are looking for an extension in the payments, I would presume, to ensure that ?ú10500 will be contributed towards the debts still. This is normal practice amongst companies handling Trust Deeds who have a responsibility to the creditors as well as to you.

You will still benefit from any unpaid debt being written off once the original commitment has been met.

Hi,

Many thanks for the reply. I thought as much, but just wanted corroboration

Thanks again

Oh, one more query actually. If i had paid in excess of ?ú250 per month at any point, could this be taken into account? I.e can this 'excess' go towards the ?ú10,500 when I am then paying ?ú150?
Thanks

Hi again.

If you were paying more than ?ú250 at one point as a result of an improvement in your circumstances (at that time) I'm not sure whether this would have an effect of a potential extension now.

I suspect that it may not but I'm interested to hear how our experts might deal with such a situation for one of their clients...

Hi zed01

I suspect that any additional payment would be looked at as a revised contribution and not go towards the arrears. The only other option would have been for a third party to make payments to reduce the overall sum due and therefore the period.

Mark

Hi Mark,

Thanks for your reply. Can I please clarify what you mean by the last statement. Do you mean that a third party could have contributed to the holders of my Trust Deed on my behalf? Who would such a third party have been? And how would have this been arranged? Unless I have mistaken your meaning?

Many thanks

Zed01

Hi zed01

The Trust Deed only deals with your finances. If your father, mother, friend etc etc offered to make a monthly payment towards the Trust Deed then the period would be reduced.

As an example, you owe ?ú2,500 left in the Trust Deed and will make ?ú250 x 10 payments. If your mother agreed to pay ?ú1,250 to the Trustee then you would only require ?ú250 x 5.

Hopefully this makes sense.

Mark

Aha, I see! Thanks again

Zed01

Hi All,

Sorry to bust in to this conversation, but could I ask something. My PPI claims are getting paid to me and I have got a large one of approx ?ú4,000. Does this mean that my trust deed could finish earlier as my Trustee (Carrington Dean) is asking for ALL of it. Also I am due bonuses worth around ?ú3,000 and they are asking for that too, am I just paying more back to my trust deed or is it going somewhere else. Do I get a statement to see where this money has went at the end of my trust deed?

I'm afraid not, perston. When signing a trust deed you are agreeing to pay whatever you can reasonably afford each month, plus the value of any assets you own PLUS any other windfalls that may come your way. The extra funds going in will be shared between your creditors too and they will end up getting a higher return than they expected.

Regarding the discussion earlier in this thread, there are no hard and fast rules on what should happen when someone's circumstances become worse whilst in a trust deed. Most trustees will seek to extend the term of the trust deed in order to limit the reduction in dividend that creditors are likely to receive. However, it is very much up to the trustee, who's responsibility is to try to protect the interests of creditors whilst being fair and considerate to the debtor's interests too.