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11 Posts

Posted - 22 February 2018 :  09:44:16  Show Profile  Reply with Quote
Hi, I have around 18 months to go and have just sent my I & E forms in for review Iím expecting my form 4 form soon but checked my previous form 4s. I have noticed over the years nothing has been paid to any creditors, is this normal?

I have looked this up and the company Iím with has a alarming failed percentage rate in trust deeds and seen they donít pay creditors till the end leaving many creditors to reject the payout. It seem to be they do this so they have received their full fee for dealing with the trust deed.

Iím in a protected trust deed and was under the impression that if a trust deed is protected it has been agreed by creditors of payouts

Voice of Reason
Advanced Contributor

116 Posts

Posted - 22 February 2018 :  10:25:50  Show Profile  Reply with Quote
It is entirely normal and nothing to be concerned about. Historically creditors received a single dividend payout at the end of the Trust Deed term. It is not like a debt management plan or Debt Payment Programme under DAS where creditors are paid monthly.

More recently dividends are now required to be paid out by Trustees on the 2 year point and six-monthly thereafter if there is sufficient funds in the account to allow a dividend of over 5p in the £ to be paid.

Any worries or problems I would always recommend contacting your case administrator in the first instance.

Edited by - Voice of Reason on 22 February 2018 10:26:12
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Sarah Houston
Trust Deed Expert

38 Posts

Posted - 22 February 2018 :  10:51:28  Show Profile  Reply with Quote
Hi Jroger,

Voice of Reason is correct previously before legislation changed creditors received their dividend at the end of the Trust Deed after all the Trustees fees and expenses were paid.
With the recent legislation changes Creditors would only receive a dividend if there were enough funds to pay 5p in the £ at the 24 month stage and 6 monthly thereafter, therefore I wouldn't be worried they haven't received any payments yet, your latest form 4 will tell you what p in the £ your creditors should expect at the end.

If you are concerned at all about the progress of your Trust Deed, I would advise you to contact your Trustee.

Sarah is no longer posting in the forum.

Edited by - Sarah Houston on 22 February 2018 11:04:37
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