You would need to discuss this with your trustee. It's unlikely they would accept this at this early stage, however if they did then they would seek the remaining contributions agreed at the start.

Mark

Sure it's better for all parties if the debt is paid off in full, rather than through smaller payments?

For example my wife pays £11k?

Hi robbiegwa.

For a sum of that size you might be right.

You'd need to put the offer to your trustee to see if they'll support taking it forwards.

Hi robbie

I suspect if that was the proposal, she would have to pay the debts plus interest @8% and the costs and outlays.

Always worth speaking to the Trustee.

Mark

So even though I've already paid £4000 into my trust deed £11k might not be enough to clear it?

Seems quite steep considering that if I continue with my normal payments they would only receive £9k in total.

Makes no sense to me.

Thanks for your replies though.

Robbie.

It can become a little complicate when trying to bring a trust deed to a close early. There are many things to consider for example the original proposal, duration left, are the creditors being paid in full?, trustees fees plus outlays, acquirenda ect. If the proposal on the table does not pay creditors in full then there is an argument there is no benefit. By leaving the Tust Deed to run its course there is a greater chance that creditors may benefit from some kind of windfall. It also prevents you from proposing a trust deed, creditors agreeing for you to pay back a lesser amount, and then a few months down the line pay the whole thing off. The floodgates would open and everyone would do it if it was that easy I'm afraid. Best put a proposal to your trustee and take it from there. They can only say no!

Hi robbiegwa.

To add to Rob's thoughts, there is a way to be sure the trust deed ends.

If, between the contributions already made and the lump sum, you can reach a certain figure you'll be done.

That figure will be the original debt total, interest on the debts, plus the fees and costs of your trustee.

£11000 plus the £4000 already paid might be pretty close to that.

If you ask your trustee firm they should be able to calculate this for you, robbiegwa. They may also be agreeable to accepting the £11000 in full and final settlement even if it is not quite enough to cover all of the above.