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Scottish Trust Deed Forum
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Topic starter
26/01/2012 10:03 pm
Hello,
I'm moving into my third year of my trust deed. Owing to my trust deed firm not increasing my payments, my trust deed has been extended to recoup the variance (around £3k).
I've been told that I will be receiving a promotion in my job in April (close to my usual time of review). I'm hoping that the pay rise will be enough to increase my payments so I can pay off the deficit in under a year.
What I'm not sure about is that when I inform my trustee that I have a pay rise and can increase my payments, are they able to change the goal posts and request that I pay more than originally agreed? Or should it be that after I've made all payments to cover the original agreement - I should expect a discharge?
I've made all payments consistently so far. The extension was due to my trustee not increasing my payments when they were supposed to (I'd agreed for an increase after a certain amount of time at the time of signing my trust deed).
Many thanks for your help.
26/01/2012 11:12 pm
Hi balamb.
During the term of your trust deed, if you find yourself in a position to pay over more than was originally expected, you will be asked to do so. A trust deed only writes off the debt that you cannot afford to repay.
I fear that your trust deed payment will increase for the remainder of the originally expected term, and then the arrears will need to be cleared afterwards.
I can understand that this will be frustrating for you if your payment wasn't increased when it should have been. However I suppose you were the beneficiary of some extra money at the time when the increase should have gone through. Not a situation of your making though.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
26/01/2012 11:34 pm
Thanks TDA,
I understand the reasoning of having to pay more when I receive a pay rise.
My concern really is around additional extensions. My original Trust Deed was meant to end in June 2012, but has been extended until I clear the arrears. If I receive my pay rise in April, I will pay more from April to June and then from June onwards I'll contribute towards the arrears. However if I receive another pay rise, then I'll be able to pay more - does this allow me to pay the arrears off quicker, or does it simply get swallowed up in the trust deed, creating further extensions?
Does that make sense?
What I mean is:
April: pay rise - pay more towards debts and trust deed
June: intended end date - start paying towards arrears
August: additional pay rise - would this allow me to pay arrears off quicker or do trustees then expect you to contribute more towards original debt?
I'm grateful to be in a position that I can contribute more, however don't fancy prolonging the trust deed any longer than the original agreement.
26/01/2012 11:51 pm
I think, once you get to June, you'll only be needing to pay back the arrears.
As you say, with increased income you should be able to do that quicker. You may also be expected to do that quicker if you can do so.
It looks like the regular contribution might have to increase from April to June. Then you should be getting into the arrears afterwards.
Best to check the detail with your Trustee though to be sure of where you stand.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
