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Steven121598
Just Joined

2 Posts

Posted - 09 November 2020 :  14:48:46  Show Profile  Reply with Quote
Hi everyone,

Need help with information relating to my partner's trust deed started in Feb 2018

S of A was 8,658.44
Claim 6364.16
Agreed claim 4,576.71

Debtors contribution in that time have totalled 1,870.82
Which were added to a 30k windfall for calculations of the debt to be payed back

The trustee requested the full 30k windfall and from what we gather taken 20% of the windfall 30k plus the usual fees

Fees based on realisations 6,374.34
Trustees fixed fee 2,900.00
Total trustees fees 9,845.91

Estimated surplus 22,028.80
Total creditors SOA 4,576.71
Statuary interest 1,013.15

Revision debtor 16,435.94
Something seems strange why would the trustee take 20% of the windfall is this legit the money left over is a saving grace and my partner's pleased to put this behind
Any help appreciated thank you

TDA (Debt Adviser)
Trust Deed Expert



13542 Posts

Posted - 09 November 2020 :  14:59:24  Show Profile  Reply with Quote
Welcome to the trust deed forum Steven121598.

I'm a debt adviser rather than being directly involved in administering trust deeds, so your question will be better answered by Kevin or Paul when they next visit the forum.

The bit that has caught my eye however is the apparent percentage charge of a realisation over and above the amount required to bring the trust deed to an end.

This feels a bit odd if it's the case, but I'm not sufficiently aware of the guidance and rules covering this eventuality. Hopefully Kevin or Paul can share their insight with you soon.

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Paul McDougall
Trust Deed Expert



94 Posts

Posted - 09 November 2020 :  15:28:05  Show Profile  Reply with Quote
Good Afternoon Steve

Whilst the fees are agreed at the start of the process, it goes against the spirit of the intention behind the legislation.

The fees of the trustee should be capped with a full case recovery. This simply means the total sums required to discharge the debt and not to take 20% of the realisations.

As a debtor, you have the right to ask for the fees of the Trustee to be audited by the Accountant in Bankruptcy.

Whilst the fees can be drawn by the Trustee ,any reasonable person would cap them. For example, if you had won the lottery and won 1 million, it doesn't meant the Trustee should be able to drawn down 20% of these.

P




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Kevin Mapstone
Trust Deed Expert



3900 Posts

Posted - 09 November 2020 :  16:42:20  Show Profile  Reply with Quote
I agree with Paul. By the letter of the law your trustee may be within their rights here, however what is fair and reasonable should also come into play.

I would suggest that your partner queries this with the trustee. They may well be willing to reduce their fees without it having to be taken to the Accountant in Bankruptcy.

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Steven121598
Just Joined

2 Posts

Posted - 10 November 2020 :  07:54:04  Show Profile  Reply with Quote
Hi thank you for the input yesterday #128077;
She's contacting them today
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Kevin Mapstone
Trust Deed Expert



3900 Posts

Posted - 10 November 2020 :  10:20:05  Show Profile  Reply with Quote
Let us know how she gets on would you?

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