Unfair Treatment by...
 
Notifications
Clear all

Unfair Treatment by Trustee ?

8 Posts
3 Users
0 Reactions
4,723 Views
(@barr01)
New Member
Joined: 14 years ago
Posts: 4
Topic starter  

Hi I need your help, I current am in a protected trust deed since Dec 09

The chartered accountants who I used started the process in May 09 and after some 6/7 months after the initial meetings and told the application was being made I called the firm to enquire what was the status and at that time was informed that the person whom I dealt with was no longer with the firm and in fact had just disappeared with all my documentation and files of others clients. I was appointed another person from the firm and gave as much information as I could at that time. The trust deed was set up at a figure of £15,500 and payments of £430pm. One year and some missed payments later (due to ill health)I have been made aware that one of the main creditors were left off the list and potentially another £6000 will be added to the figure to repay. My other problem is that in April 09 we were forced to sell the house and I had a cash balance of £21,000 most of which was used as living expenses and the repayment of some personal loans. The trustee is now looking to claim that figure in addition to the £15,500 but is it possible to claim an asset that was disposed of many months prior to the trust deed being put in place?
I feel that I am being dealt with rather unfairly to the point that I have a friend who is willing to loan me the sum of £21,000 (original figure.which the trustee has said they will not accept as a final payment and release me. I pointed out that if the trust deed had been dealt with at the first time round and advise as to how to distribute the asset was given then an amount would have been available for the creditors. The firm also have continually requested proof of loans etc and I have repeatedly responded saying it was ALL given to their guy who disappeared, all i get is , well we have said sorry for that.

I dont know what to do, please help.


   
Quote
TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 16 years ago
Posts: 13594
 

Hello barr01 and welcome to the forum.

I'm sorry to read about the disruption to the set-up of your trust deed and the hassle/delay this will have caused you.

Would you mind confirming a couple of things that might turn out to be relevant?

In terms of the missed creditor, was this creditor left out of the trust deed because:
1 - You supplied them with the creditor detail, but they didn't add it to your list of creditors.
2 - You forgot to provide detail of that account (second time around).

The second time the process started, did you make your Trustee aware of the recent sale of your home and the lump sum it had generated at the time?

You mention that you repaid some personal loans with the lump sum. What were the reasons for selecting the particular creditors that you repaid (rather than the others that went into the trust deed later)?

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
ReplyQuote
(@barr01)
New Member
Joined: 14 years ago
Posts: 4
Topic starter  

Hi and thank you for your reply, the answer t your questions are as follows:-

1. I did indeed supply them with creditor details at the initial dealings with the IP prior to him going walkabout, but it has now become apparent that on the second attempt they omitted to include that creditor.
2. I did make the Trustee aware of the sale of the house and lump sum generated both times.
3. I repaid a couple of personal loans prior to the trust deed being set up, one was a loan made by a friend who needed it back, he has a disabled wife and two children and by then was unemployed. The other was to a business supplier who insisted on repayment to enable me to continue trading with him and in doing so would allow me to continue to earn money to be able to pay my contributions to the creditors.

I should mention at this point that all of the debts were from my two companies which folded and I was left with the personal guarantees which made up most of the total creditor figure.


   
ReplyQuote
Mark McFadyen
(@mark-mcfadyen)
Famed Member
Joined: 16 years ago
Posts: 4798
 

Hi barr01

An interesting post and full of technical issues. From the information;

I am surprised that the Trust Deed was set up to repay back ?é£15,480 against ?é£15k debts. DMP or DAS looks better.

Also can you confirm that in the period between April 2009 and May 2009 you sold your house, received the equity and paid spent ?é£21k paying off existing loans to family and business creditors, together with living costs?

The fact that another creditor surfaced is irrelevant as long as the Edinburgh Gazette notice appeared. I assume they have no proceeded with court action.

If you have sold property then there are 2 issues Unfair preference for payments within the previous 6 month period or Action of Reduction or in your case redress against the parties who received the payments. This depends on the nature of the repayment and a number of other issues. The unfair preference issue would an main area of concern as there has been payment, possibly outwith the 6 months, but may a greater period as an action in Common Law. That said, the challenge is against the receivers of the funds.

My advise, if the matters are being challenged, is to speak with an Insolvency Lawyer.

Mark

Mark is not posting regularly in the Trust-deed.co.uk forum.


   
ReplyQuote
(@barr01)
New Member
Joined: 14 years ago
Posts: 4
Topic starter  

Hi Mark

Thanks for your comments, The total creditor debt inclusive of the latest one was approx £140,000 which was agreed at 12p in the pound, that gave us a repayment figure of £16,800 if I include the Trustee fees the figure we end up with is around £21,000. The new addition of the £21,000 proceeds from the house sale has only been confirmed to me in writing by the TD after I submitted an annual status report. I have never hidden the fact of the house sale and in fact sent them yet another copy of the solicitors letter to me at the time of fund transfer from the house sale. MY concern is that they seem to have moved the goalposts yet again and can do so unchallenged, my friend has offered to pay the TD off for me up to the figure of £21,000 and I made this offer to the Trustee but he has refused it saying it is not in the best interest of the creditors. My monthly nett earnings are less than was anticipated when the TD was set up but he has also come back with a higher monthly repayment demand. what can I do I just want this settled and be able to get on with my life.


   
ReplyQuote
Mark McFadyen
(@mark-mcfadyen)
Famed Member
Joined: 16 years ago
Posts: 4798
 

Hi Barr01

I dont see any way the Trustee can seek the payment from you if the funds have been utilised for other loans etc prior to it being signed.

The options are as mentioned above. He would need to:

Seek an Unfair Preference action against those who received the funds, depending on timing: or

Raise an Action of Reduction/Redress as this could be constued as the disposal of an asset within the challengeable 5 years (family) or 2 years (suppliers)

I am not sure on what grounds he is seeking repayment from you.

Mark

Mark is not posting regularly in the Trust-deed.co.uk forum.


   
ReplyQuote
(@barr01)
New Member
Joined: 14 years ago
Posts: 4
Topic starter  

Hi Mark, neither can I !!!

I have only just got off the phone to them and asked them to clarify why they now want me to pay the proceeds of house sale to them in addition to the agreed TD monthly repayment, also why in making that calculation they have not allowed for any of the detailed expenditure (rent, council tax, food, etc)I furnished them with to explain why the money was not available in Dec 09 when the TD was signed, which was in fact more than 7 months before hand. I also pointed out that had their IP not gone walkabout and the TD was signed when it should have been, the best part of the money would have been available to them for creditors and at very least could have advised me how or how not I could utilise it.
They are now going to discuss the situation and come back to me in due course.

It may also have something to do with the fact that this same firm worked as the appointed liquidator for one of my companies and said they didnt make all of their fees, but I cant help but think there may be a bit of "sticking it to me" surrounding this. I foolishly said they could lump the company shortfall in fees onto my TD which he has done. He has also issued an increase in fees of almost £3000 in his report to the creditors stating extra time and effort incurred in chasing me for records, confirmation of expenditure, copies of papers. All of the required paperwork was given to the employee who disappeared, so how can they be justified in asking for more money and use me as the reason.

Its a nonsense surely??
John


   
ReplyQuote
Mark McFadyen
(@mark-mcfadyen)
Famed Member
Joined: 16 years ago
Posts: 4798
 

Hi Barr01

Bottom line is creditors agree the fees. You have the right to have these audited if you think they are unjust/too high.

Keep us posted on their response to the funds they are seeking.

Mark

Mark is not posting regularly in the Trust-deed.co.uk forum.


   
ReplyQuote
Share: