Hi Stu

the subject of early repayment gas been discussed a few times on the forum and it's a possibility as long as you can show that a third party has provided the funds and your trustee is happy to close early.

However, I don't this will lead to obtaining future credit any easier.

Mark

Thanks for your reply Mark

Do you know how much I will be required to pay in order to close off the trust deed ?

I currently pay ?ú775 per month and I have 16 months left to run.

Thanks

Hi stu,

I think that 16 x ?ú775 would be a guide towards a possible figure.

There might be scope for some reduction as I imagine the overall fees charged by the Trustee could be reduced by an early close.

Some of our experts may be able to explain how their firms might handle a similar scenario.

I have been informed by my trustee that the only way to conclude a Trust Deed early is to repay your creditors in full plus statutory interest. As a Trust Deed is a form of Insolvency, whereby you are paying back a proportion of your debt over three years, the Trust Deed cannot finish early without being fully satisfied.

Thanks

It depends which way you look at it - I think we would ask for 16 x ?ú775 - and any subsequent reduction in costs would mean a slightly higher dividend for creditors. However, if a proposal was put forward by your parents that was less than this amount then it could be put to your creditors by your trustee to see if they are willing to accept it.

I guess

Hi
We are currently in our 30th month of our Trust Deed, but unfortunately have an extension of 5 months due to my husband being off work for a period of about 4 1/2 months with depression and my daughter being in a full bodied cast for 6 weeks. At this time we reduced our payments but found that we were really toiling and decided to get in touch with the company we pay our secured loan to (however we did advise our Trustee that we were toiling to make ends meet and said that we were trying to get a reduction in our monthly payments) the company we have a secured loan with could not reduce the payments for us but decided that they could re-write the loan outstanding for a smaller monthly payment that we can afford, at the time there was no way we could make the full payment and as we were not physically getting money in our hands the company were happy to do this. This happened last April (2009) we are now thinking waas this right that we went ahead and did this. We also had a one month holiday payment from our mortgage payments in March 2009 as we were totally skint - have we done something wrong?

Thanks

As long as you have kept your trustee informed about these changes then I can't see anything wrong, Dened

Hi Stu

I am surprised at the Trustee making these comments on closing a Trust Deed early. I would be tempted to write and ask him where in the guidance or legislation this is stated.

I have closed several Trust Deeds early with no issues whatsoever.

Mark

Is there any implication if my partner takes out a loan to close my trust deed?

I wouldn't have thought so stu provided that your partner is happy to do so and the repayments are affordable.