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trustedhibee
Contributor

11 Posts

Posted - 08 September 2019 :  21:59:00  Show Profile  Reply with Quote
Good evening,

Is it possible to ask a trustee to end a trust deed? Without a trustee applying for bankruptcy? I wrote earlier in the year about my payments increasing from 95 to 521. I had original debt of 5.2k. To date I have paid over 4k to the TD. I am still expected to pay back 521 until Feb 2021. I fully understand creditors need to be paid in full and fees need to be paid, but the total amount is ridiculous for little over 5k debt. Any advice regarding this would be great.

Regards,

14

Paul McDougall
Trust Deed Expert



12 Posts

Posted - 09 September 2019 :  08:34:59  Show Profile  Reply with Quote
Morning

Unfortunately, a trust deed can only be closed early if you are in position to pay debt in full plus interest and all costs of the trustee.

It may be worthwhile for you to contact your trustee and ask for a full cost recovery to see how much you need to pay to close the trust deed.

Paul

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David Tannock
Trust Deed Expert



2218 Posts

Posted - 09 September 2019 :  10:07:46  Show Profile  Reply with Quote
Hi trustedhibee,

Thats an extremely big jump in payments per month. Was there a change of job and increase in income?

If you have still to pay the Trust Deed to February 2021 I make this another 17 payments totalling 8,857. If you have paid approx. 4,000 then in total you will pay approx. 13,000 into the plan.

Did you discuss a DAS at the time you signed the Trust Deed? A DAS paying 95 per month could have paid it off in approx. 55 months if you used a free sector organisation to do this such as a local citizens advice or Stepchange.

As Paul has advised the only way to close the Trust Deed early is for full repayment of debts, plus interest and costs. Trustees fees are normally based upon a fixed fee and then a % of your payments per month.

Id ask the Trustee for a full breakdown of what your total debt is plus interest and their costs.

Id also ask them about their advice at the start of the process and if you discussed a DAS with them.

Once you have that information you can then decide what you do from there.

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Kevin Mapstone
Trust Deed Expert



3777 Posts

Posted - 09 September 2019 :  10:56:18  Show Profile  Reply with Quote
A trustee can choose to terminate a Trust Dreed if someone is not complying, eg not making their payments. Quite a risky way of forcing a Trust Deed to end though, as they could just choose to apply for you to be made bankrupt instead.

As others have suggested, it may be worthwhile seeking clarification from the Trustee as to what their fees are first, to see if you are likely to finish your Trust Deed earlier than February 2021.


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trustedhibee
Contributor

11 Posts

Posted - 09 September 2019 :  11:15:10  Show Profile  Reply with Quote
Thanks for the replies.
I started a new, higher paid job a year into the TD. I'm happy to pay the higher amount, but when I spoke to Carrington Dean, they said the TD was still due to run until Feb 2021. I have now emailed 3 times to ask for the information you suggested and have been told that because one of my creditors hasnt replied they can't give me the figures, which I find ridiculous nearly 3 years into the TD.

Does this sound right or should I seek further advice?

I was never advised about a DAS, have never even heard of one.

Again, any help would be welcome

14
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David Tannock
Trust Deed Expert



2218 Posts

Posted - 09 September 2019 :  13:05:17  Show Profile  Reply with Quote
Hi trustedhibee,

Id be asking them why a DAS wasnt discussed with you at the outset as this could have been a more suitable option for you and provided flexibility. You can only enter a Trust Deed with at least 5,000 of debt and it sounds like you just met that criteria by 200. When speaking with clients about their debt options we are very careful to outline the timescale of a Trust Deed but also that a DAS could be 6-12 months longer if they used the free sector to set this up.

Also was it explained that if your circumstances changed you would be required to pay more including the interest and costs?

If you feel you are not getting anywhere with them and have emailed 3 times you could consider a more formal email or a complaint. This might get the case escalated to someone more senior within the organisation to look at it.

I think if you can find out about the advice you received at the outset along with the total balance required to clear the Trust Deed you can decide what you do from there.

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trustedhibee
Contributor

11 Posts

Posted - 11 September 2019 :  00:31:46  Show Profile  Reply with Quote
David,

Upon further contact, I was told that my final balance would be 13,381. I questioned where this amount was coming from. Breakdown provided was approx 4.5k in costs, 5k in debts and 1k in interest (max 20% of debt, according to gent on phone, who didn't seem to know) I was then told that my TD would still run until Feb 2021, even if the debt, fees and Interest were paid in full. This didn't make sense to me. They advised me that I would be refunded a y extra money I pay in. Does this sound right?
I am contemplating seeking legal advice, as from the start I don't believe this has been the best option for me.

Any help will be appreciated.

14
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TDA (Debt Adviser)
Trust Deed Expert



13056 Posts

Posted - 11 September 2019 :  10:28:48  Show Profile  Reply with Quote
Hi trustedhibee.

Your trust deed should certainly end early if you've paid in the total of the debt, fees/costs, and interest.

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Kevin Mapstone
Trust Deed Expert



3777 Posts

Posted - 11 September 2019 :  14:26:31  Show Profile  Reply with Quote
There is still almost 3k unaccounted for if my maths is right??

It would be very unusual to have to pay 20% interest on the debts. Technically it could amount to this, but usually creditors are happy to accept 8%, which is the default rate unless they claim a higher contractual rate.

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trustedhibee
Contributor

11 Posts

Posted - 11 September 2019 :  14:42:34  Show Profile  Reply with Quote
Kevin,

This is the point I was trying to make. I feel like I am being taken advantage of. Should I be asking to speak to my trustee regarding the matter?

Regards

14

Edited by - trustedhibee on 11 September 2019 22:03:57
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David Tannock
Trust Deed Expert



2218 Posts

Posted - 13 September 2019 :  10:39:07  Show Profile  Reply with Quote
Hi trustedhibee,

If you are unsure about what you are being told over the phone and are feeling the way you are then it would suggest writing to your Trustee to set out your concerns.

This will give them the opportunity to review your case and then respond in writing to your concerns. Normally when someone writes to a Trustee someone more senior in the organisation will become involved to review things and respond.

If you do that then you should have a clearer picture of the balance outstanding.

Just to confirm that if your Trustee is repaid in full along with interest and costs then it does not have to run for the full duration, it can be closed earlier and you will receive your discharge.

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