Hello Info-hunt and welcome to the forum.

It might be possible to bring your trust deed to an early end if a third party pays over an agreed lump sum, but you have no "right" to this happening necessarily.

It's for you to negotiate with your trustee to see if they'll allow it.

Sometimes they'll agree if it seems like the best option for the creditors.

Sometimes they'll agree to the lump sum, stop your monthly payments, but your discharge will not come until the 4 year point. This would be so that your creditors could still benefit as expected if a lump sum comes your way.

Sometimes they will not agree.

Technically a trust deed is actually different to bankruptcy, but it is true to say that they're both quite similar and both forms of personal insolvency.

I hope it works out with your trustee and let us know if you have any further questions.

Hi so if trustees and creditors agree to lump sum and its paid off after 2 years so i wont have to make any other monthly payments but will get discharge after 4 years only??also what should i answer to a question where it says have you ever been declared bankrupt?will the answer be no?i will have to apply for my indefinite leave to remain visa in 2016 and i have heard that its affected by bankruptcy and they perform credit check too.will they consider trust deed as bankruptcy

Hi again.

There are three possible scenarios outlined in my first reply which I think are most likely. You'll need to raise the issue with your trustee to find out where they stand in respect of your case.

A trust deed is not bankruptcy.

I'm afraid I don't know anything about credit checks and applications to remain in the UK.

Hi Info-hunt,

As TDA has advised this is really something that your Trustee will need decide upon but there is no harm in asking.

I'm not able to give you any guidance on the issue with your visa and application for indefinite leave. You may wish to find an organisation who specialise in this type of advice to clarify this.

Let us know how you get on with your Trustee and lump sum payment offer.

As long as you signed your Trust deed prior to November 2013 then it is possible to be discharged early if your trustee and creditors are happy to agree this.
The law changed in Nov 13 so that any trust deeds signed after that date must run for at least 4 years unless the debts are being repaid in full.

Ok great to know about the rule change as i signed before november 2013 so hopefully that shouldnt be an issue