while im on the subject, is it standard practice to take 100% of all bonuses received and 50% of overtime ?

Hi idjmark

It is difficult to comment without sight of the original and subsequent paperwork.

In gereral, no they cannot increase the time period without valid reason or seek additional sums. Did they advise why they thought there were ?ú4,500 arrears and the reason for the increased time period.

Unfortunately you are unable to go back to the start before the Trust Deed was signed, however I am slightly confused about the nature of the letter and suggest you ask WA to expalin exactly the position re arrears and increased time period.

The position re the car and any bonuses/overtime should have been highlighted exactly at the meeting and confirmed in writing. Was this ever done?

I have harped on for years about the absolute necessity to have a meeting/discussion with the IP firm & DEFINITELY not some selling middleman form via the web or cold calling promising you the earth. Once you have spoken to the IP firm direct, have all matters explained in great detail in writing before signing anything and if you are unsure, have them clarify in writing and then, only then, make the decision.

Mark

Welcome to the forum idjmark.

I'm sorry to hear that you are unhappy with the situation as it stands. I'll work through your points one by one:

The ?ú500 to protect the equity in the house is a cost that many trust deed companies levy in the circumnstance of a property that has no equity. We have heard of companies charging this twice where two people living in a property sign a Scottish trust deed. We know that some companies charge the ?ú500 only once in the same circumstances. Some companies (including two represented in this forum) do not charge the ?ú500 at all but provide the same service without charge.
I'd suggest that your commitment in this respect should have been made entirely clear to you in advance.

The "arrears" appears either to be a mistake or based upon some liability they have assessed for payment in lieu of an asset (the car perhaps). I'd suggest you contact them to clear up what the basis for this suggestion of arrears is. A trust deed cannot be extended without a good reason.

A car of substantial value will be looked at in a trust deed. The method by which this will be done should be made clear in advance of signing the trust deed.

When it comes to bonuses and overtime it's really a matter for you and the trust deed company to come to an agreement in advance. The companies featured on this site tend to advocate some kind of balance so that there is an incentive for the client to earn additional money which of course is then also of great benefit to the creditors as well. Clearly you have no incentive to earn a bonus if 100% of it has to be handed over.

I'm afraid that there is no way to cancel the protected trust deeds that you are in. They are legally binding on all parties. You could cease to pay into the trust deed but, in the circumstances, this might result in your bankruptcy. You may decide that you prefer that option; payments would only last three years in bankruptcy (though the car might be vulnerable).

I'm sorry that this will be of no benefit to you at this stage, but to other readers of this post idjmark's post encompasses many of the themes that repeatedly arise here in the forum.
Anyone considering a trust deed should, before they sign, discuss and insist upon confirmation in writing of how the following things will work:

1 - The monthly contribution amount.
2 - How a car or house will be dealt with.
3 - How overtime or bonus payments will be dealt with.

Doing so will almost eliminate the potential for serious misunderstandings of the type that can be seen here.

idjmark - will you let us know what you learn about the "arrears" once you have queried them?

Hi Mark / TDA - thanks for the advice, just a shame I didnt come on here beforehand ! No meetings etc, done all over the phone.

It seems the arrears was due to my bouns payment (?ú4,000) of which 100% has been added to the dead....adding 19months after my initial 3 years are up, so I am now in for 5 years - gutted about this.

the 2 x ?ú500 paymets are a real bug bear also as I heave just learned this is not a standard practice.

They have cleared up the car by saying anything over ?ú1,000 will be realised at the end of the deed, via sale or personal loan..?

dont know if maybe bankrupty would be an option for me know as Im really not happy as is my partner...our contributions to Wilson Andrews top ?ú600 per month as it is.....really gutted.

Hi ldjmark

over ?ú1,000 for the car? The Trust Deed should run in line with the guidance on Sequestration. The figure should be over ?ú3,000, although it depends when you signed. I've undernoted the legislation/guidance:

6.15 Motor vehicles (After 15/11/10)

Only vehicles valued at over ?ú3,000 vest in the trustee (see Section 6.9 of these notes).

If a vehicle is valued at over ?ú3,000 and the trustee thinks that it is cost-effective to sell it, it should be sold as soon as possible unless the vehicle is considered essential to the debtor to get to work so that he can make a meaningful contribution to his estate. But, if the debtor is allowed to keep a car that could vest in the trustee, he must maintain the agreed regular contributions. If he fails to do so without reasonable excuse, the trustee should repossess the vehicle as soon as possible and sell it if that is cost-effective.

On heritable property:

ÔÇó If there is little or no equity, can title be transferred for a nominal sum?

The Accountant recommends that the trustee should not wait for it to appreciate in value unless there is no co operation from the debtor, spouse or co owner. If the debtor does not wish a formal re conveyance the trustee should consider issuing the letter at Form 22 of the Statutory Instruments formally abandoning his interest.

Mark

Hi Idjmark,

Please read back on my preious posts on the trouble I have had with this company. I think them not telling people things at the start is a major issue with them. I am completely sick and tired of the problems I am having and have to agree that entering into a TD was the worst thing I ever done. I am actually going to end up paying back more than the debt I originally owed and will be paying back over a longer period as mine was extended also. The level of service received, I personally feel is a disgrace and it's not until you actually enter into the TD you actually experience the unaceptable service. I'm still chasing a review that was supposed to be done on my case 3 weeks ago! Turns out they lost my bank statements and I have to send them in again. I'm seriously thinking about taking my complaint to the Financial Ombudsman.

So did you get a bonus of ?ú4000 that you did not hand over to them, idjmark?

Hi Kevin,

Got a bonus end of last year of ?ú4,000 close to just after i signed the deed. most of which went to arrears in my mortgage and car loan payments. But it seems there not interested in that and just want the full 100%....really wish I had found this forum before I signed any documentation.

Hi idjmark

Unfortunately any bonuses or overtime should really be declared at the time of receipt as in most cases a proportion of this will be asked to be paid to the Trust Deed.

Normally the percentage that is to be paid over should be agreed before you sign the Trust Deed.

If you were in arrears with your mortgage, when you signed the Trust Deed, were you not given a greater allowance every month to pay the arrears?

Julie