Welcome to the forum nano1019

Your trustee will have done a fair bit of work in setting up and administering your trust deed so far, so can off course expect to be paid for doing so, regardless of the fact that your creditors are being paid in full.

In the same way, your creditors are entitled to interest on the debt if there are sufficient funds available to enable the Trustee to pay it. In fact they are entitled to insist upon payment of interest at the rate you originally signed up to when you took the debt out with them, if that is higher.

So yes, unfortunately it sounds as though you are likely to have to pay out more than your original debt total will have been. I guess if you had known at the time that this change in circumstances was going to happen, then a different route would have been cheaper for you - but hindsight is a wonderful thing!

one thing that is not quite right about what you have been old is that your Trust Deed does not necessarily have to run for the full 3 years. If you pay in enough to repay the debts plus costs plus interest before that then there is nothing to stop the Trust Deed being brought to an early close (which may mean that the Trustee's costs are a little less than they anticipated at the start)

Welcome to the forum nano1019.

It's good that you're being allowed to keep 50% of your commission. This gives you an incentive to earn more while ensuring your creditors get paid back a reasonable amount - the type of balance that a trust deed should strike in my view.

Some trustees might require you to pay over more than 50%, perhaps even all of it in some circumstances.

If your earnings are very high in the future you might be able to be discharged early once you have in total paid over:

1 - The original amount that you owed in total +
2 - Interest on the debts (usually 8%) +
3 - The fees of your trustee.

If your total contributions don't reach that level (including what you have already paid) the term should remain as initially agreed usually.

Thank you very much for your quick response and your answers.
It is all clear now just one more thing.
If I pay my debt earlier when do I have to pay their fees?
I mean I have to pay straight away or I will get some time to pay it.

Thank you.

It all comes from the same "pot" nano1019.

An early discharge would normally only happen once your total contributions into that "pot" equalled the total amount as described above.

I understand but what is going to be happen if some reason I won't have that £4500 to pay their fees?

Thanks

Your trustee has first call on the pot. They're paid in preference to your creditors.

If you reach the end of the agreed term and the above total hasn't been reached the creditors will get a percentage of what is owed to them.