Are you saying you had a lump sum that you paid to a third party so they could settle your TD?

No I pay the td money into his bank account every month

Welcome to the forum Adam.

Have you been making one payment, and another party (in theory at least) has been making a separate payment?

Or has there always just been one payment which a third party was meant to make for you.

Are you are homeowner? Is there equity in that home?

Has anything changed with either your income or your household expenditure since your trust deed began?

Sorry for so many questions, but I'm trying to unpick what the issues involved might be here.

We were writing at the same time Adam!

Please let us know a little more and we'll try to help.

hi there was only 1 payment that 3rd party is meant to pay but never has we were told that we needed some1 to say they would pay it but we would be paying the money into his bank
i am a home owner but their is no equity
my job has changed and that is why they want the extra payment

Thanks Adam.

So could you please confirm whether the following is true:

When you investigated starting a trust deed, the provider determined that you were not in a position to pay anything into a trust deed? The only way to fund a trust deed would be for someone else to make a payment on your behalf?

In fact, you have been able to afford to pay money into the trust deed since the start. This has been happening, albeit with you routing the funds through a third party each month?

You've now got a new job with a higher income. Your trust deed provider has determined that you're now able to make a contribution without the assistance of a third party? You've been asked to pay this additional amount each month?

Have I got this about right Adam? Is there anything you'd like to add or correct?

yeah thats pretty much it but the td want both the payments now
they are saying that i cant make the 3rd party payment even thou we have have since day 1

OK.

So is the third party still expected to make a payment as well as you?

yes but i make the 3rd party payment too

As you say, you can't possibly be expected to pay whatever is available from your income as well as the third party payment too. If the third party is not willing/able to make the payment themselves then I suggest you make this clear to your trustee. As long as you are paying what you can afford and creditors are getting at least as much as what was originally proposed then I can't see why the Trust Deed should not be able to carry on on that basis.
You really need to speak to your trustee again and make it clear that what they are suggesting is not possible.

all they keep telling me is that i cant make the 3rd party payment even thou i sent in copies of the money being put into the other bank account
is it possible to get the 3rd party removed from the td and make me the person responsible for the payment without failing the td
also the company i started my td with has went into administration so these are new people i am dealing with they just dont want to hear anything i have to say nor do they want to give me a meeting

i have been reading other posts and i see that it is possible to come out of the trust deed can you tell me how difficult this is and why the company that i am dealing with are so against it

Hi Adam,

When you sign a trust deed you undertake to pay over what you can reasonably afford. You've stated earlier in this thread that it was determined at the start of your trust deed that you could not afford to pay anything. As a result of that, a third party payment was agreed instead.

As it turned out, you were able to afford a payment. Because a payment has been affordable, your trust deed provider is expecting you to pay that money directly. This seems normal and correct.

Since then your income has increased. Unless your reasonable expenditure has increased by the same amount, it seems reasonable for your trust deed provider to expect you to increase your contribution.

It's the third party contribution element of this that might be more negotiable. You can ask your trustee to consider ending the responsibility for a third party to make a payment given that you're now in a position to make a very sizeable contribution yourself.

Your trustee should consider this, but they also need to be mindful of the interests of your creditors. Your creditors agreed to your trust deed on the basis that there would be a third party contribution AND that you'd pay over any surplus income that might be available throughout the term of your trust deed.

The trust deed is legally binding on you, your creditors, and your trustee. There's no straightforward way to come out of it. Your trustee might agree to terminate your trust deed, but they'd need a very good reason to do so - not least because you're able to afford a large contribution towards your debts each month at the moment.

You could cease complying with your trustee and cease making payments, but you'd then be exposed to risks such as being made bankrupt (with a knock-on risk to your home) or a legal attempt to take your monthly contribution directly from your employer before it's paid to you.

All in all, the most productive option at the moment might be (as Kevin suggested) to try to work with your trustee on the third party payment element of this. Will they show flexibility given the improvement in your own finances and given the misunderstandings that seem to have arisen at the start (primarily that a third party contribution has to come from a third party - not you)?

If the third party subsequently refuses to make this payment (from their own funds) then your trustee will have a decision to make about whether the trust deed can continue or whether they'll fail it. Unfortunately this, again, would not be without risk to you.

when this was set up the person setting it up knew that we would be making the payment into the 3rd party account
i totally agree that if i earn more i should pay more but they wont take into account that i already pay the trust deed payment of 530 although it doesn't come out of my account and now they want 400 more from my account
why is it so hard to change to a das were all the debts would be paid in full