Check your debt solution

In the first instance, check back your initial paperwork. What your describing does not sound like any Protected Trust Deed I have ever seen (a 10+ year Trust Deed is practically unheard of).

Likewise, in a Trust Deed, the Trustee is required at the outset to have you sign a Form 1B, which states clearly how the equity in your property will be dealt with. There should be no confusion as to whether your home is impacted etc…

Is it possible you are in a Debt Payment Programme under the Debt Arrangement Scheme (DAS)? DAS excludes your home, but requires you to pay back the debt in full. A 10-12 year term in DAS is plausible.

Likewise, Trust Deeds have a requirement for the Truste to review your financial position at least annually, whereas DAS is a fixed payment across the term. While the money advisor should review your financial position, it is not as critical as in a TD.

Write Off

Assuming you are in a Trust Deed, the Trustee is correct. The effect of granting a Trust Deed is to vest your whole estate in the Trustee and the Trustee is required to ingather that estate. Likewise, if your debts increased from your initial estimate, this would not have an impact on the Trust Deed.

If a creditor chooses to write off a debt, either in whole or in part, the only effect this will have is to improve the dividend for the remaining creditors. You are still required to complete your contribution term (usually 48 months) and the asset realisation strategy agreed at the outset.

Home

As mentioned above, you should have signed a Form 1B for your Trust Deed at the outset. Your Trust Deed document should also state that it includes your dwelling home and all the other documents (Statement of Affairs, Form 3 etc…) will make reference to your heritable property and how this will be realised.

You mention it was trapped in the Northern Rock debacle. Did your home have any equity in it?

My advice is to check your initial paperwork.

Annual Reviews

Trustees are required to complete reviews of your income and expenditure at least annually. Any reduction in affordability should be reflected in your contribution, as should any increase in your affordability.

IF you are in a Trust Deed and your Trustee is refusing to complete annual reviews, this is grounds for a complaint (See below for more information).

Termination

A Trust Deed can be terminated if you fail to comply with the terms of the Trust Deed. In this circumstance, your debt will not be written off and any interest and charges can be applied to the debt.

However, as you are a homeowner, you run the risk that if you fail to comply with the form 1b, the Trustee will have the right to seek to take possession of the home and sell it. Alternatively, they could petition for your bankruptcy. These outcomes are unlikely, but not impossible.

Complaints Procedure

You should go to your Trustee firm’s website and locate their complaints procedure. Raise a complaint via the correct channels with the firm themselves. If unsatisfied with their response, you can escalate your complaint via the Insolvency Complaints Gateway, who will send it to your Trustee’s Recognised Professional Body (RPB).

Summary

I must reiterate, what you have described does not sound like a Trust Deed. There is a possibility that you are in a DAS, or a Debt Management Plan.

I am listed as one of the experts on the forum, if you want to have a quick chat and I can check the appropriate registers (Register of Insolvencies and DAS Register), I would be happy for you to get in touch via nick.smith@quantuma.com.