Hi lhenderson and welcome to the forum.

I presume that the ppi claims are in respect of debts you incurred pre the signing of the trust deed. Therefore any sums ingathered, by your trustee, will be paid towards your Trust Deed estate, particularly as you haven't received your discharge.

It does seem unfair however that these claims are delaying your discharge.

Julie

It's in interesting question actually, lhenderson. The answer may well depend upon the wording of your trust deed. If the trust deed specifies a three-year period then it could be argued successfully that any further windfalls that come in after the three years are indeed yours to keep. I've no doubt your trustee would not see it this way and it might have to be argued in court I suppose, but it may be worth using this as leverage to make the case to your trustee that they should discharge you immediately instead of pursuing this nonsense with ppi reclaims which is delaying your discharge.

I've nothing in principle against insolvency practitioners querying PPI policies etc but to wait until the end of a three-year period before starting this process is surely wrong. If you don't get the answer you want from your trustee then you would be within your rights to raise the matter with their professional body if you wish.

I'm amazed that we are starting to see so many examples of people, who have done everything that they promised to do, not being released from their Trust Deed because their Trustee has decided to launch PPI claims.

I should say that this seems to only relate to a couple of Trust Deed firms and that most are not doing this.

I've mentioned this a couple of times but I really hope that one of our visitors will be able to find out, and share with the forum, exactly how the proceeds of such a claim will be distributed.

I'm convinced that the claims company/solicitor will pay a referral fee to the Trustee for a successful claim.
They will also charge a fee themselves for the work done on the case.
Any remaining funds will presumably go to the creditors.

As I understand it the claims company/solicitor would have to disclose any referral payments under Ministry of Justice rules as well as disclosing their own fee levels.

I do hope that lhenderson or one of our other visitors will be able to tell us the breakdown of where the money ends up.
We'll then be able to judge whether the Trustees that are doing this are genuinely motivated to recover funds for the creditors or whether a big cut of the proceeds for themselves is the main motivation.

hi thanks for the quick reply, on my letter it says the trust deed will run for a period of three years and further to reviewing the debtors financial position it has been agreed that she'll make a contribution of ?ú150

Hi Ihenderson

I suspect that they will argue that this is a contingent asset and therefore would vest in the Trust Deed like any other asset. This is why they have not progressed the discharge.

As TDA says, it is extremely unfair that you are being punished after successfully completing your part of the agreement, especially when the Trustee had 3 years to sort this out.

Mark

hi, i've spoke to the company dealing with my trust deed, i asked what my creditors actually see of this money, she said 25%, i feel i'm getting absolutely no where with them, they said it could take months!!! far longer than the 3 years stated!!! Do you guys think i should go to citizens advice?? to see where i stand with reguard to the discharge, this was all my fault getting into this debt, but thought trust deed would be the answer, my husband got sequestrated at the same time with the same company yet he was discharge 2 months ago, this has seriously affected my health, i suffered from a nervous breakdown shortly after entering this and i've been on medication ever since and stuggle to leave my house as i suffer from horrendous anxiety and panic attacks, i've had to give up work due to this, i just want it over its been hanging over my head for far far too long now x

Hi lhenderson,

Firstly I just want to say that your health is the main priority over and above the Trust Deed and associated matters.
In your post you have very honestly and openly taken responsibility for the debts having arisen... but that's in the past and you have done what is required of you to repay what you can reasonably afford.
Completing a Trust Deed is no small achievement and I think everyone here would congratulate you for that.

I'm stunned that 25% of any PPI claim would end up with the creditors. Could you confirm that the 25% relates to the claim or whether it relates to all of the money contributed to the Trust Deed in general?
Do you think that you could find out from your Trust Deed company or the claims operator exactly how the remaining 75% would be divided between them? As a paying client of each firm I think you are 100% entitled to a full and frank answer, not least because it has put a hold on your discharge.
Should it turn out to be the case that only 25% of such claims end up being received by creditors I'd think that the lending industry would want to ask some serious questions of Trust Deed companies that are using this modus operandi.

On a practical level I would suggest you demand a full status update from the claims operator of exactly what stage your case is at and when they expect it to be resolved. Again as their client you are entitled to this information. If you were to find that this will only take a short period it may help to take the pressure off you.

Finally I'd just say that you're very welcome to use this forum as a source of support while everything works through. I'm sure that our members, visitors and experts will want to help you as much as possible.

hi thanks for your quick reply, i justed phoned again to confirm but i have been given the wrong information, i think i caught her off guard by asking to break it down she says that the 3rd party that are processing the claim get 25% then the 75% goes into an account, then they withdraw the company fees for overall trust deed then divided to creditors sorry for confusion, she didn't sound to happy about giving me this information

25% as a fee for the claims operator seems reasonable in terms of how that market generally works.

I wonder if some of that 25% is then paid to the Trust Deed company for introducing the case to the claims operator. If that happened the funds would not necessarily go into the Trust Deed "pot" used to pay creditors and the Trust Deed fees. This money could simply be an additional income stream for the company concerned.

The claims company should tell you this if you are curious to find out. I'm sure a lot of readers would be very curious to know as well.

The claims company should also be in a position to provide you with an anticipated timeline for the development/resolution of the claim.