Hi kdog7.

You can ask. Your trustee will need to weigh up:

1 - Your creditors get the certainty of your income contributions. So, for example, there's no risk to them of you suffering a reduction of income in the future that leaves you unable to make the payments.

2 - Your creditors lose the possible benefit of an increase in your ability to contribute, and/or lose the possible benefit of you receiving a windfall in the next couple of years.

The possible responses are:

1 - No. You'll need to complete the full three year term.

2 - Yes, with a relatively prompt discharge afterwards.

3 - Yes, but your discharge will not happen until 36 months have gone by (though you would not be making the monthly payments). This would enable your creditors to benefit from any windfall that came your way over the next two years as per the initial agreement.

Hi kdog7

It's exactly as described above.

There is no formal guidance as such on this and it would be at the discretion of each trustee. I don't see there would be much point if the offer was accepted but the Trustee did not discharge you or himself. Probably best to speak with your trustee and get their advice.

Mark

Hi kdog7,

When you say your family member is going to pay off your remaining balance via a personal loan, do you mean they would be taking a loan out with the bank or by using their own savings for this?

If it's a loan from the bank you should take into consideration the interest that you would need to pay on top of the loan. If for example you have £7,800 outstanding in terms of monthly payments to your Trust Deed but your family member takes out a loan for this from the bank, you could end up repaying £9,000 +. It's just something to be mindful of when weighing up your options.

As TDA and Mark have advised it's a decision for your Trustee to make but there is no harm in asking.

Let us know if you do ask and how you get on.

It would be a loan to me payed back at the same rate to clear the TD. I suppose I can only ask I am not fussed either way. I can do agency work and get very well paid but have avoided doing so as I would have to hand 50% over so I have opted not to do it. with the loan I may be able to do the extra work and be fully rewarded to clear them off.

For the sake of anyone reading this who may have signed a Trust Deed after the rules changed on 28 November 2013, it is important to note that the option to end a Trust Deed early in this way is not available to them.

When the new regulations came in extending the minimum term to 48 months they also stipulated that the only circumstances in which a Trust Deed signed after that date could be finished early would be if creditors were being repaid in full with interest.

I hope I have read your last comments wrong KDOG7 - if not, then your attitude towards your Trust Deed and work is worrying.

Is it. Thanks for your input