Hiya,

Thanks very much for your replies. So my next question is does the guarantor loan HAVE to be included in the Trust Deed? Or can I just keep paying it every month?

Thanks,
Gillian.

Hi gillymac25,

My understanding is that all debts that exist on the date of signing need to be included in the Trust Deed.

There could also be no provision made in your income/expenditure statement (used to calculate Trust Deed contributions) to fund ongoing debt repayments.

Presumably if a third party decided to continue making the payments on that debt there would be no need for the lender to chase the guarantor.

Interested to hear Kevin's thoughts on this when he next checks into the forum.

Trust deed assistant is right, any spare income you have has to be shared between all creditors, you wouldn't be allowed to prefer one over the others just because someone else is guarantor. There is nothing to stop someone else paying the guaranteed loan instead so that they don't chase the guarantor.