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Scottish Trust Deed Forum
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Topic starter
21/06/2019 11:31 am
Hi all,
In January I was made redundant. my redundancy package contributed just short of £10,000 to my protected trust deed which we are currently 26 months in to a 60 month term. I remain out of work (through not fault of my own, all i do is apply for jobs and go to interviews). The trustee have agreed to suspend payments for up to 3 months whilst i continue to look for a job, however, the trust deed payments are literally a fall in the ocean compared to our other debts such as mortgage and council tax etc. I have a meeting next week with the job centre to see about signing on - i was previously advised due to my husbands income that we were unable to claim JSA so i've lost out on 6 months worth of payments.
My in laws have come in to some money (I have not asked how much) and have offered to pay the remaining debt on our deed - our debt was £33,349 at the conception of the trust deed. My husband and I each have a protected trust deed.
I've looked through the paperwork for our trust deed and can't see any information about how things would work with our trust deeds if my inlaws were to pay the balance of the debts - the alternative is that they gift us money each month to cover the bills until I find a job.
I have never not worked and our debt occured as a result of both my husband and I both being seriously ill concurrently over a 2 year period and not earning. I absolutely despise the fact that we have had to enter the trust deed, the fact i'm not working and that we are now in this mess - the whole thing is starting to have a significant impact on my mental health too.
Does anyone know how 3rd party payments work with a trust deed?
Thanks in advance.
21/06/2019 1:21 pm
Welcome to the forum tryingtosortthingsout.
Sorry to hear that you've had such a tough time recently.
The amount needed to make an early exit from your trust deeds will be:
1 - The original debt total plus/
2 - Interest on that debt plus/
3 - The fees/costs of your trustee.
The payments you have made already (monthly payments and the redundancy lump sum) will count against the above total amount.
You could contact your trustee to get an estimate of the total required to complete the trust deeds early.
I'm sure your trustee would also be open to considering a monthly payment funded by a third party. This option might cost less overall than paying a lump sum to end the trust deeds, but you would of course remain in the trust deeds until the term agreed has been completed.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
21/06/2019 2:10 pm
Hi TDA,
Thank you so much for your reply. I have made a note to call them on Monday to discuss figures and see what they come up with. I suspect the interest and fees will probably equal whats been paid in already (based on the information provided when we took out the deeds) and I'm not sure exactly how much money there is available from the in laws (they have no idea how much debt we were actually in as we were too ashamed and stubborn to admit how bad it was)
21/06/2019 2:14 pm
Hi again.
It's definitely a good idea to get in touch with your trustee.
With the support of your family available, and a trustee who has already indicated that they're prepared to show some patience, I'm sure you'll find a workable route forwards.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
21/06/2019 3:10 pm
Hi tryingtosortthingsout and welcome to the forum.
Sorry to hear about the redundancy and change in circumstances.
As TDA has advised if you were to settle a Trust Deed early then it’s the full debts, plus interest and then any fees/costs. This can add up to quite a large sum.
An alternative to paying all of that money over in one lump sum is for a third party to make the payments to your Trust Deed on your behalf. If that were to happen then all that would be paid is the amount you agreed to rather than interest and fees/costs on top of that.
Best to reach out to them on Monday and have a chat. Make sure you follow this up via email or ask for things to be confirmed in writing if you decide to move forward with a particular option on the table.
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