All you would be expected to pay would be your debts + 8% interest and your trustees fees...... Assuming your windfall covers that amount you would not need to pay anymore to your PTD......

Welcome to the forum J4N3Y.

In most instances the full amount of "windfalls" needs to be paid into a trust deed.

As Porcupine has pointed out the amount you'd have to pay over isn't unlimited and once you reach a certain level there may be no need to carry on with monthly contributions to the trust deed. The total (including any payments you've already made to the trust deed) could be:

The debt total at the start of the trust deed, plus interest on the debts (this could be at the original contractual interest rates for each debt), plus the fees/outlays of your Trustee.

Once/if that's all paid your discharge should be on the way fairly soon afterwards.

Hi TDA,

Just out of interest, are there any "guidelines" as too how the final amount would be worked out or is it the decision of the Trustee ?

Hi jp73.

I think it's pretty much as Porcupine/I described it (though we have seen both 8% interest and contractual interest mentioned in the forum before). Whether formal guidance exists will be a question I'm sure one of our experts can inform us about.

The principle behind it seems to come back to a trust deed only writing off debts that cannot be afforded. Therefore if a big lump sum comes in it's seen as fair that the creditors are paid in full and put back in the position they were before the trust deed in terms of interest. Obviously it's fair that the Trustee is paid for their work as well. Much of their work is front-loaded (setting up the trust deed) so an early finish may result in some reduction of their fees but not always as much as people might hope for.

Thanks for your advice, much appreciated!

Slightly off subject where does this mythical "8%" figure come from....?

As part of my job I deal with rent arrears and when preparing a summons to book some one into court, the money owed is usually Rent Arrears + 8% interest. Although I have never ever seen anyone asked to pay interest if they actually pay off they actually pay off their rent arrears........?

Just curious.......?

Hi all

The 8% interest is statutory ie its in the legislation & applies in all TD & sequestration cases where theres enought funds to clear the debts & costs in full.

Mark

Hi Mark (or Kevin or Shona).

Am I right in saying that statutory interest is "simple" rather than "compound" (i.e. interest is not charged upon interest in the future)?

Off-topic as well, but I'm not sure if I'm mixing it up with something else?

Hi all

No, it's 8% per annum. Could be quite a sore one if there's an inheritance which allows full setttlement.

Mark