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Scottish Trust Deed Forum
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Topic starter
12/06/2012 11:12 pm
Hi
I have noted on another post that the monthly payments made to an IP are then paid to the creditors, (minus IP charges), on a regular basis or at the end of the TD period. Are the monies in the interim period placed in a ring fenced "client account" ? i.e. if the IP goes out of business (is that possible?)is the money you have paid protected and passed to your creditors? I'm guessing it is and the TD is moved to another IP for administering ? Just interested in the structure of how it works 🙂
Thanks
12/06/2012 11:20 pm
You are correct in your assumptions Buz.
The cash is in ringfenced client accounts which are scrutinised carefully on monitoring visits. It also has to be insured to further protect a client and their creditors.
Like all other businesses it is possible for insolvency practitioners to themselves become victims of insolvency. Arrangements would be made for another IP to take over the appointment where this happened.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
13/06/2012 10:35 am
TDA just about covers that one. Some Trust Deeds have built into the document terms of supercession and yes an insurance policy (Bordereau) on each Trust Deed. The Insolvency Practitioner also has a Bond that he must renew Annually.
Chris
Chris is not currently posting in the Trust-Deed.co.uk forum.
13/06/2012 5:18 pm
A wise question. With everything you read these days, you are right to be cautious, but as has been said already, you are covered for all eventualities.... Not that you should need it [:)]
Shona is not currently posting in the Trust-Deed.co.uk forum.
Topic starter
13/06/2012 7:43 pm
Thanks all for the info and reassurance...(no pun intended) 🙂
28/07/2012 10:01 am
That seems to cover al the important points. If there is any real risk to your job, then play that up a buy more ! Good luck .
Shona is not currently posting in the Trust-Deed.co.uk forum.
28/07/2012 10:19 am
Think Shona was answering the question at:
http://www.trust-deed.co.uk/forum/topic.asp?TOPIC_ID=2695
Not easy when posting from a phone on a train, as I well know too!
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
