Welcome to the forum blumblo.

Anyone entering into any type of debt solution should be granted a budget upon which they can live reasonably during the term. It makes no sense for anyone involved otherwise.

Sadly we do sometimes hear of firms that cut this too tight in order to make a trust deed seem viable (on paper at least). Equally, to be fair, we're conscious that some individuals propose to cut their budget beyond a reasonable minimum in order to access a particular debt solution that they prefer over another.

Is there anything in writing about how equity would be dealt with? Practice can vary between firms and sometimes between cases depending upon the circumstances. If there is now equity in the property the trustee might feel obligated to look into raising that sum for the creditors. Whether that is fair or not depends upon what the arrangement was at the start. If there is no equity (valuation minus mortgage balance) then I cannot see that there will be anything to pay.

I totally agree that all options, including bankruptcy (a word that is commonly used interchangeably with sequestration) should be set out at the start so that people can make an informed decision.

Discharge from the trust deed will follow completion of obligations. This includes contributions from income and contributions from assets (such as PPI or equity in a home). Simply reaching a 10p dividend for creditors may not be sufficient.

As much as you might have a case that things haven't been handled correctly, I'm not sure that will form a basis to demand that the trust deed is closed before all obligations have been completed. The trust deed became binding on all of the parties when it was set up.

Your family member is entitled to request details of the fees that have been charged and to challenge them if they're disputed. They can have them audited independently if there's a dispute with the trustee.

Your family member also has the option to make a complaint to their trustee. This can be taken to the professional body of which their trustee is a member if they consider that a complaint to a trustee hasn't been dealt with to their satisfaction.

Hi

Thanks for they reply. I have a few issues that a need to clarify

Why is there nothing in writing provided by the TD provider stating what their expectations of obligation are?

Why did a registered insolvency practioner accept documentation and incorporate that into a formal agreement that showed expenditure for Food as ZERO

Working under FSA regs myself I know that due dilligence and management of Risk are required to retain your practioners licence. For this to have been agreed shows that either the IP noticed but wanted the money, or the IP didn't notice and was incompetent.

I know a lot of people come on here to protect the lucrative Trust Deed business model, but does anybody know if there has been succesful litigation against a TD provider for failing to show due dilligance, acknowledgement of debtors provisions and reasonable creditor expectations.

Its all well and good saying that they should have, but they didn't explain any of this. People who turn to a trust deed are not the most financially savvy in the world and appear to be easy prey.

I should say, I am aware that I could pay that money myself, but the TD is under no obligation to stop pursuing my family member for what it believes they can pay.

Should obligations and expectation on behalf of the TD not be clearly expressed in writing with signed agreement before commencement of the trust deed?

Thanks

Hi

Should say sorry if the wording is harsh on my posts. Got a tendency to slap it all down. All replies are very gratefully recieved

[:)]

Hi blumblo.

The obligations can change. If your income goes up your payment might go up. If you inherit property you might have to pay over the value of it. It therefore wouldn't be possible to set out exactly what those obligations will actually turn out to be at the start.

I obviously can't answer why any provider of debt solutions would make no food allowance for a client. It makes no sense.

Who comes on here to "protect the lucrative trust deed business model"? That aside, I'm not aware of any such litigation. People are, of course, free to take legal advice and act upon it though.

These days certain things, like equity in a home for example, have to be dealt with more thoroughly at the start of the process. It would be fair to say that misunderstandings and/or misinformation about equity at the start of trust deeds has historically led to some of the most painful threads that we have read on here.

Your family member, if they cannot resolve disputes with the trustee, does have access to the professional body of which the trustee is a member. Insolvency practitioners are subject to significant scrutiny of their actions and view these bodies in much the same way that you (and I) might view FCA regulation.

just an observation but if the members insolvencey practitioners ascociation find fault with the trustee then what are the punishments that can be applied to the trustee thanks.

Hi littlemo.

Fines are possible. It can range as far as removing their licence (without which they can no longer work as IPs) in serious cases.

These types of things can and do happen every year.

Hello Blumblo. I'm really interested in what you're saying as a family member is also in a very similar situation. Could you please update your profile with a contact email address so that I can contact you or could you contact me through my profile email address. If you don't wish to be contacted then that's fine. I hope this is ok with you Trust Deed Assistant.

Hi littlemo
On mobile right now, but will update profile later

First port of call would be to raise your concerns about affordability with the Trustee, blumblo. Also ask for clarification re equity figure and how they have calculated it. You might find the Trustee is willing to review the situation once the issues are highlighted.

If not satisfied with their replies then a formal complaint can be raised.

Both my husband and I entered into a TD and appear to be on a similar situation - can I ask what coy dealt with the TD - would it be RSM Tenon?