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marimch21
Just Joined

2 Posts

Posted - 05 June 2019 :  11:38:53  Show Profile  Reply with Quote
Hi All,

Very new to all this and bit of a long winded post but here goes...

I signed a Trust Deed on 20th May after dealing with debt issues for several years. It is still to become protected. My debts are around 15k and I have signed trust deed for 150 pm for 4 years which clears which over 7k.

I recently received a letter advising I was receiving 10k in a council equal pay compensation. Naturally very delighted and excited that my luck was turning around, I had sorted a Trust Deed for my debts and this 10k could help with paying family debts and booking a holiday to actually relax after all of the stress. I also had the idea of paying off my Hire purchase on car and mentioned this to my insolvency administrator who advised that any compensation from council to me would be for my trust deed and I shouldn't pay off the hire purchase as it then becomes an asset (car valued over 3k).

This is so disheartening and upsetting as I have booked a holiday and promised family their money back. My insolvency administrator advised that it was the councils responsibility to pay my money to the trustee directly. How would the council know and how would this work? If the money does come to me, am I able to keep a small percentage of it? The money from my family is from bills I fell behind on and I have also already booked a holiday (!)

Upon looking into Trust deeds it has made me feel this was the complete wrong option for me as it means if I ever earn extra money in a promotion or bonus or ever do overtime then none of the money is my own, I don't really see any standard of living or desire to better my career if I don't get to enjoy any of this money?

If my 10k goes directly to my 15k debt, the 5 which is leftover- will I continue to pay the 150 pm for 3.5/4 years or can I pay this additional 5k off any quicker? If I earn more money and contribute more can I then end a trust deed earlier when paying full total debt?

Please any help guys.

TDA (Debt Adviser)
Trust Deed Expert



12957 Posts

Posted - 05 June 2019 :  11:56:46  Show Profile  Reply with Quote
Welcome to the forum marimch21.

Were you aware that this lump sum was coming to you when you signed your trust deed?

If so, did you make the adviser you spoke with aware about it?


Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
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marimch21
Just Joined

2 Posts

Posted - 05 June 2019 :  13:26:42  Show Profile  Reply with Quote
Hi There,

No, otherwise I wouldn't have signed the agreement straight away. THe timing has just been unfortunate in that I signed the TD on 20th May and received my documents for lump sum offer on 30th May.
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TDA (Debt Adviser)
Trust Deed Expert



12957 Posts

Posted - 05 June 2019 :  13:44:07  Show Profile  Reply with Quote
That is very unfortunate timing.

I'm afraid that any trustee would require you to hand over this additional sum of money to help repay your debts. This is part of the agreement that you've proposed to your creditors.

Your trust deed can end early if the total amount paid in adds up to:

1 - Your debt level at the beginning plus

2 - Interest on your debt plus

3 - The fees and costs of your trustee

This is likely to add up to a fair bit more than 15,000 I'm afraid.

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

8 Posts

Posted - 05 June 2019 :  14:23:02  Show Profile  Reply with Quote
Just to add in case its something you haven't thought of. It looks like the holiday can only have been booked in the last few days so I suggest you make a quick call to your travel company to enquire about cancellation clauses in case you need to cancel it. At least you'll know where you stand there.

I can't see your creditors allowing funds for a holiday when the money should go to them unfortunately and family debts would come after your other creditors have been paid.

You definitely need to speak to your IP. What they are saying is correct and unfortunately you signed up to these terms and conditions.
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