As I understand it, most TD's complete, sometimes with extensions if changing circumstance or income means agreed payments are interrupted or missed. IP fees will be paid first from available funds! What's left will be paid to creditors. As it is dictated by available funds, all there is is all there is. If that happens to be IP fees plus 50% of debts owed, great, if it is only 10%, that's what it is.
Unless I've misunderstood, it's 16% of what's owed as opposwed to 16% of what is agreed by creditors at the beginning of a trust Deed.

Hope experts will clarify if I'm wrong.

Hi Ralph

Im not sure what the stats are on trust deed failures which dont last the full term, personally ours are about 1-2% normally through loss of employment, non co operation etc.

If a case fails, the costs and outlays are paid and any balance paid to creditors as a dividend.

Mark

Mark

Pamjo is right, Ralph. It isn't that only 16% of what was expected into the trust deeds is paid in. Rather, on average, trust deeds pay out to creditors 16p per pound of the outstanding debt.

Given that the fees for IPs usually run to a few thousand pounds, what would happen if someone's Trust Deed failed due to lack of cooperation after only a few payments which in total did not cover the IP's fees?

Can I assume that the uncooperative person would be left with all the same debts PLUS owing money to the IP?

Hi uncleben.

Possibly, but how likely they are to pursue it is another matter. They have a very detailed knowledge of their clients capacity (and less frequently, their willingness) to pay towards their debts.

Thanks Everyone,

Thats what I thought about the 16% Kevin and Pamjo.