Notifications
Clear all
Scottish Trust Deed Forum
3
Posts
3
Users
0
Reactions
1,298
Views
Topic starter
18/02/2013 11:14 am
Hi,
Sorry but this is probably a daft question but is the length of time that you are paying into the Trust Deed set at the beginning? I keep reading that individuals are paying for longer than they thought etc. I thought it was usually a 36 month period of set payments then that was it!(unless you win the lottery or Aunti Nellie leaves you an inheritance) Is that too simplistic a view to take. If you had no equity at the beginning then I thought that was an end to that.
Just getting a tad stressed re everything
Lesley
18/02/2013 11:44 am
Hi Eoinbaby
The time period is agreed at the start and is normally confirmed in writing in any post meeting review. Any extension is normally due to missed payments through the period of the Trust Deed.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
18/02/2013 12:33 pm
Hi Eoinbaby,
A Trust Deed genrally consists of 36 monthly payments from income. However, the duration may be extended or shortened depending on the individuals particular circumstances. Often, Trust Deeds are extended to 42 or to a maximum of 48 months. This may be because the contribution is low, the debt is high and of course the Trust Deed must provide that creditors get at least 10p in the £ for it to get it off the ground.
In addition, if there are arrears of contribution the Trustee may extend the deed in order that the agreed number of contributions may be paid (depending on reason for missed contribution). On the flip side, should funds come in to allow the deed to be closed early, this may reduce the overall term.
So basically, missing contributions without a valid reason is generally the only way it will be extended. That or that an additional asset is discovered which was not anticipated.
Rob is not currently posting in the Trust-Deed.co.uk forum.
