Hi again WIKIKEE.

It would be normal that you would be expected to pay over your share of the equity and the value of any investments, such as an endowment policy, that you hold.

It would therefore seem to be normal that your creditors would benefit from the growth in your investment so that more of your debt is repaid.

Therefore it doesn't seem in principle to me that anything incorrect is being requested of you.

Where this may change of course is if you can verify that you entered into the trust deed on the basis of commitments that this would all be handled differently. Please correct me if I'm wrong but I suspect from your post that you're not holding a letter or similar to this effect from that time? Is your understanding based upon verbal communication at that point?

On the other thread I've made some comments on the possibility of making a commercial case connected to the decline in the value of your home. There may be some opportunities for you in this respect.

I've also written a little about the balance of interests that your trust deed provider should maintain on that thread as well. They'll want to treat you fairly, they'll want to ensure the actual terms of your trust deed are met, they'll want to observe the guidance and rules that they're subject to, and they'll also want to make sure that the creditors receive from the trust deed the amount that should be paid in according to the other factors and what they believe you are in a position to pay over.

Hi yes you are pretty much correct in what I was thinking. I believe that what they are asking for is within the terms of the law etc. but whilst the paperwork states basically that as an alternative to the policy being sold they will accept £ 5,000 as my share. The verbal discussions that I had had 3 years ago did centre around me remortgaging or cashing in the endowment to pay the whole thing off. So whilst I believe that what they are trying to do now is right, I think I have been misled initially. I realise that the situation I was in 3 years ago meant I needed a solution but I genuinely believe I did not misunderstand this part of it. I was not told that cashing in the endowment now would result in them wanting half of the value of the policy now, and furthermore I am confident that the discussions were clear in that this is the route I would take. But no I don't have those specific words in writing, only that as an alternative to the policy being sold would they accept the £ 5,000. Is it too much to ask that they should have made some further reference to the fact that this would happen now. I've a feeling that I'm fighting a lost cause here and really just need to try and come to some sort of arrangement now to pay any further sums I have to. I do feel though that I've been let down over this as I have in good faith paid all my contributions on the understanding that I would remortgage or encash the policy at the end when clearly someone didn't know what they were talking about. I would like to speak to the adviser and remind him this is what he told me just to see what his answer to this would be, but surprisingly enough I'm told that the advisers don't deal with existing clients. I realise that some things may be misinterpreted quite easily but I'm 100 % certain that they agreed with my course of action. Unfortunately I realise without something more concrete in writing I probably don't have a leg to stand on so will need to try and make the best of the situation that I am in at the moment, and I need to stop rambling 🙂

Hello WIKIKEE.

I don't know for sure but I think that the comment that they'd accept £5000 in lieu of the endowment policy probably was connected to that sum being paid over at that particular point in time based upon its' value at the time. At least, I'm fairly sure that's what they may have understood by it.

My impression of the information that you have provided here is that you may be best served by focussing now on coming to an agreement on the equity and trying to put together a commercial case for a lower figure to be used if you think that's appropriate. It doesn't sound as though your Trustee will be in any way required to accept this as the equity figure was set at the start but I doubt that there's any harm in asking. However, I may have missed something and I'm sure one of trust deed other experts will point it out if I have.

This will not be of any benefit to you, but I think the situation described in your threads once again sums up a vitally important course of action for anyone considering a trust deed. Other readers who are thinking about going ahead with a trust deed should get a written statement of exactly how their assets (especially their home but also vehicles and investments such as an endowment) will be dealt with before they sign the trust deed. That relatively small step will go a long way to preventing issues of miscommunication, misunderstanding or misinformation that can easily arise later when several people are involved at several stages of a formal process like a trust deed.

The real unfortunate thing though regardless of whose misunderstood what we rely on them the experts to tell us everything we need to know. I feel let down that I'm the one suffering now through what I consider their fault. I've sailed through the last 3 years confident that I knew what I was doing only to have this dropped on me like this at the last minute. Regardless of what the misunderstanding actually is, I KNOW I made it clear that this is what I was going to do and they didn't tell me I wouldn't be able to. I realise though that I need to just deal with the situation. Will try the other route now seeing if they will budge on the equity fingers crossed. As TDA says though it's the same thing over and over, you need everything in writing, but to be honest I think there can always been room for something being missed. Thanks for all your help and advice. Will let you know how I get on.

Best of luck Wikikee. I'd have thought that given the increase in value of the endowment then this should be able to offset some of the reduction in value of the house without creditors being any worse off. Sounds like your trustee is trying to have their cake and eat it...

Well they wouldn't go for my idea. As Kevin says the creditors wouldn't be any worse off, but the Trustees are not interested. In fact since I signed the TD they haven't been in the slightest bit interested. Trying to get answers to the small queries that I had took forever and to be honest I'm now totally of the understanding that they are working for themselves, not for me and not for the creditors. Sorry if i sound bitter here, but I am very much so. Its not just that I'm not getting what I want, I'm not getting what I thought I was getting in the first place and nobody is interested in a compromise. My only way forward is to encash the endowment and pay them extra money for 2 years which to be honest is not something I want to do as how can I be sure they won't want something else in 2 years - my car will be paid off by then, they will want something from that won't they?! So I am currently trying to beg steal and borrow the money I need to get this finished with. Fingers crossed, but if I can't get the funds I need now I will be seeking written confirmation from them that I will be discharged from this after the agreed payments have been made with no further surprises! If nothing else this should serve as a warning to others, make sure you get everything in writing even something you think you understand make sure you get that in writing and that it's not left too vague and open to misinterpretation.