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expired
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58 Posts

Posted - 28 June 2018 :  15:51:34  Show Profile  Reply with Quote
this is the reply i received today below and i ended up phoning the insolvency officer who was very sweet and understanding lady and she said the whole team sympathises with my situation but since new legislation came into force in 2013 things have got worse for the debtor and a lot better for the creditors. email below:

"Please be advised that at the current time the Trustee is not in a position to consider lowering the costs of the set up and administration of the Trust Deed.

Please note that in order for your Trust Deed to be completed sooner than originally stated it would require a sum of monies sufficient to pay creditors 100% of the balance owed plus an additional 8% statutory interest (which accrues from the date you signed your Trust Deed until the date that the liabilities are paid in full) and as advised, the costs incurred for the set up and administration of the Trust Deed.

Whilst the Trustee could appeal to your creditors and the Accountant in Bankruptcy for a potential early discharge, it would require documentary evidence as to why you need to retire early?"

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expired
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Posted - 28 June 2018 :  15:59:52  Show Profile  Reply with Quote
now here is my dilemma, i receive my lump sum pension in December, the whole amount of 30000 goes to trustee to pay creditors including fees, if i receive a discharge form 5 letter, can i sell my home to down size and if not i will lose my home as well all for 23000 debt? would trustee be happy to disconnect my property at this stage, if not i am in serious financial trouble and could lose everything i have worked for over 40 years.

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Edited by - expired on 30 June 2018 11:13:19
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expired
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Posted - 28 June 2018 :  16:03:30  Show Profile  Reply with Quote
i have been informed that my trustees quote of 30000 to be discharged is for now, i explained i was not retiring till the end of the year and they said i would be dealing with a daily interest compound rate which could take the estimated quote well over 30000, it just never ends, trapped in a nightmare i cant escape.

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Kevin Mapstone
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3740 Posts

Posted - 28 June 2018 :  16:17:25  Show Profile  Reply with Quote
Hi expired

Do you have any choice as to how your pension is paid, eg the timing of the lump sum. Is it possible to draw down an increased monthly income rather than a lump sum?

I am not qualified to give pension advice, but would suggest that these are the kind of questions you should be asking someone who is. Maybe the most sensible way to proceed would be to try and find a way of retiring but with your pension being drawn down in a way that would mean you can complete payment to your trust deed on similar terms as to what was originally agreed instead? As Sharon said, your trustee cannot force you to draw down from your pension, so it might be worth you doing it in a way that suits you best if there is any flexibility available.

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expired
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58 Posts

Posted - 28 June 2018 :  16:42:51  Show Profile  Reply with Quote
thank you kevin for your response I will look into it, I was hopefully leaving some money from pension lump sum in my bank to cover my mortgage payments, but as explained my lump sum now belongs to trustee.

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expired
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Posted - 28 June 2018 :  16:44:31  Show Profile  Reply with Quote
if i reduced the lump sum i would have issues with paying my mortgage at 980 a month.

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expired
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Posted - 28 June 2018 :  16:46:55  Show Profile  Reply with Quote
quote:
[i]Originally posted by expired[/i]
[br]thank you kevin for your response I will look into it, I was hopefully leaving some money from pension lump sum in my bank to cover my mortgage payments, but as explained my lump sum now belongs to trustee.



If I paid all of my pension lump sum 30000 and received assurance from the trustee that my home was not of interest after my form 5, I think I would need to sell my home and down size, its my only option available?

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expired
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Posted - 28 June 2018 :  16:55:28  Show Profile  Reply with Quote
one thing that bothers me, i mentioned to trustee I may have a lump sum of 30000 and they funnily enough add up their fees and my original debt to 30000. So if I had 40000 would they add up their fees and my debt to 40000?

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expired
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Posted - 28 June 2018 :  23:01:13  Show Profile  Reply with Quote
Sharon has answered my question as per other forum topic.....thanks.

This case is slightly different as you have received a form 5 (or will in due course) and have paid the nominal payment.

I would request the trustee recalls the inhibition and provides a letter to you advising that they have relinquished their interest in the property.

That way, the trustee should not have to instruct a solicitor and the asset would be re-conveyed back to you. You would therefore be able to conclude the sale of the property without further input from the trustee.

Hope this helps


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Sharon Toal
Trust Deed Expert



351 Posts

Posted - 29 June 2018 :  08:44:33  Show Profile  Reply with Quote
expired

I am sure all the contributors will agree that this is a rather complex issue and each trustee firm will have their own way of dealing with this issue.

I think once you speak to a financial advisor, you may have a better understanding on the pension advice planning - they may suggest you could purchase an annuity allowing you to receive a monthly payment as a private pension rather than receiving a lump sum but a financial advisor would be able to give specific advice regarding your circumstances.

The trustee would still be able to seek a contribution from this as this would be classed as private income but would perhaps avoid the full pension payment towards your debt and allow the trust deed to continue as originally outlined to creditors.





Sharon is no longer posting in the forum.

Edited by - Sharon Toal on 29 June 2018 08:45:51
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expired
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Posted - 29 June 2018 :  14:13:31  Show Profile  Reply with Quote
quote:
[i]Originally posted by expired[/i]
[br]if i reduced the lump sum i would have issues with paying my mortgage at 980 a month.



as above even with my works monthly pension i dont have enough to maintain my mortgage payments.

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Kevin Mapstone
Trust Deed Expert



3740 Posts

Posted - 29 June 2018 :  17:18:54  Show Profile  Reply with Quote
I think Sharon means that instead of drawing down the lump sum, you could investigate whether those funds could be paid to you as an income instead, or in regular smaller amounts. That way you may be able to keep paying your mortgage but avoid having to pay a lump sum to your trust deed.

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expired
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Posted - 30 June 2018 :  09:41:40  Show Profile  Reply with Quote
Thanks for all the advice guys, cheers.

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Posted - 31 July 2018 :  15:54:42  Show Profile  Reply with Quote
I am retiring this year and they have sent me a qoute to pay full debt.

here is my letter and their response. 6 months seems a long time to discharge trust deed.

I also thought a form 5 would be a sign your trust deed is discharged and any interest on my house.

see letters below:

Hi

Once said full payment is paid I gather that this trust deed will be discharged with a form 5 and that the trustee will have no interest on my property?


Their response: Once the funds are received, your case will be referred for closure and the Form 5 issued to confirm that you would have met all of your requirements.

The Trust Deed is not fully closed until the Form 7 is issued and this is when we will no longer have an interest in your assets or affairs.

Please note the full closure process can take up to 6 months.

Is this correct???

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Edited by - expired on 31 July 2018 15:55:36
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TDA (Debt Adviser)
Trust Deed Expert



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Posted - 31 July 2018 :  17:32:11  Show Profile  Reply with Quote
Hi expired.

So, it seems most firms take the view that an interest in a property ends when Form 5 is issued. The client has completed their obligations and is free to move on. The restriction on the property (the inhibition) is removed as part of the closure process.

We've heard a few times recently that one or two firms see this differently and consider that their interest in the property remains in place beyond the issue of Form 5 and lifting the inhibition.

If your debts have been fully repaid, along with interest and the trustee's fees plus costs, it's hard to see what interest there would be in a property (though I suppose it's possible previously undisclosed debts could come to light prior to the trustee's discharge).

I can't advise you legally whether the position your trustee is taking (different to some other trustees) would stand up to scrutiny.

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