Hi Morphon

this appears to be a commonly held belief that no payments change hands until it's protected. Once the Trust Deed is signed it is legally binding. I suspect the outlays alone which the Trustee has incurred will be greater than the ?ú230.

If it's Northern Rock, I suspect that the Trustee's fees are greater than 50% of the total sums collected. It may well be that the new offer will be accepted.

Fingers crossed, but I suspect it will be okay.

Mark

I forgot to mention:

Now that i have signed a trust deed, am i able to go with a DMP instead or do i now have to go with sequestration?

In fact, the total fees of the IP are 90%!

Are you saying that the Trust Deed agreement is:

36 x ?ú230 = ?ú8280

Trustees Fees = ?ú8280 x 90% = ?ú7452 (inc VAT & Costs)

or are you saying that they will be paying 10p in the ?ú which is completely different.

Hi Insolvencyboy

I'm not sure where your figures are from or the fee calculation as there's nothing in the post to suggest this.

Help!

Mark

First Post 1912 = 230 per month

Hence the total over the period of 36 months

Post at 1925 indication that IP Fees = 90%!

Does that clarify

Hi Morphon

Can you confirm how you know the fees are 90%. If the IP has calculated the fees based on the 10p in the ?ú rule, then this would concern me as Northern Rock do not work under this method of calculation and agreement and your IP should be aware of this.

Also I assume with fees at this level, they are running your business, selling multiple properties on your behalf and generally having staff working round the clock on your case!!!!

Mark

Mark

Let me clear this up.

Northern Rock will get 10p in the ?é?ú1.
Which, i think, tells me that they will only receive 10% of their money back. So where does the 90% go?

I should hear today what their reasons are for refusal and will post when i find out.

Hi Mark,

It is 10p in the pound.

I have no assets to worry about either.

Can i appeal what Carrington Dean are asking for fees?

I would certainly be querying the level of fees with them if I were you morphon. From the figures above it certainly sounds like they will have to reduce them a bit in order to get your trust deed agreed by Northern Rock

Hi All,
God I am so worried now, I have ?ú20,000 loan with Northern Rock and I am now into the 4th week of the waiting time for it to become protected, I am also with Carrington Dean and they are paying my creditors ?ú0.07 in the pound, I thought things were running ok but after reading this I am back to stressed!!! When will I hear if anyone refuses the trust deed?

Hello,

It sounds like there is some confusion about the balance between the contributions, the fees, and the amount offered to the creditor. Hopefully I haven't misunderstood but as I see it...

The fact that Northern Rock have been offered 10% of the debt does not mean that 90% of the contributions are going to the Trust Deed firm.

It means that after the fees of the Trustee have been taken into account the amount left over for Northern Rock happens to be equal to 10% of the debt balance.

As we do not know from the information provided how much the debt to Northern Rock totals, there is no way to know how much the proposed fee level is.

Morphon - if the Trust Deed becomes protected the 90% that you mention would be written off once the Trust Deed has been brought to a conclusion. Hopefully Kevin is correct and your Trustee can find a way to work with Northern Rock for your Trust Deed to become protected.

Hello perston,

There is no harm in staying in touch with the Trust Deed company to find out what creditor responses have been received.

As we have seen a number of times on the forum Northern Rock are very open to Trust Deeds provided that they meet a certain criteria that experienced Trust Deed firms will know about.

Thanks for the response, I have spoken to my trustee and there has been no response as yet from any creditors, on the 28th May it becomes protected!! Fingers and legs and arms crossed. I will keep you posted.