Welcome to the forum silverline.

If your income has increased you should let your trustee know as soon as possible. Delays might result in arrears building up that cause problems for you later.

As you, your creditors and your trustee are bound into the trust deed there isn't a great deal of flexibility about how this will be handled.

If your capacity to repay has increased you'll be asked to increase your monthly payment. These increased monthly payments will continue until either you reach the end of the term of your trust deed (having completed all of your commitments) or until you have paid in total the sum of the following:

1 - The full amount of the debts owed at the start of the trust deed +

2 - Interest on these debts +

3 - The fees and other costs associated with your trust deed.

Hi silverline and welcome to the forum.

Often people ask me can they increase their payments to clear the balance of their Trust Deed quicker. If someone has signed into a 36 month Trust Deed then generally they can't reduce the term or pay this off quicker by making increased monthly payments. You pay what you can afford in the 36 month period.

If as TDA has advised you can increase your payments and pay back your total debt, plus interest and costs then this could reduce the timescale and clear the balance quicker.

If you can answer the following questions we should be able to give you an idea if you may be able to pay the balance off quicker or not:

- How long is your Trust Deed due to last and how long do you have left?
- How much did you agree to pay per month?
- How much do you think you can now pay per month with the increase in income?
- How much debt did you enter into the Trust Deed with?

Ok sorry i perhaps should have been clearer.

i have six months left with an outstanding balance of 5,760. It was originally 240 a month but as i missed quite a few payments i agreed to increase the amount to 300 a month.

At this rate i will have a shortfall of circa 4000. I will however be given this sum through various retention payments / bonuses and finders fees for placing people with my company. None of these are guarenteed income so cant exactly declare them? I have found however that i am getting them and as such i would like to pay them straight to my trustee and allow me to complete my T.D in July as planned?

Thoughts?

Hi silverline.

Regarding extra income such as that you mention, some or all of it will likely be due to your trust deed under the existing terms.

If that's the case it might not count towards your arrears.

Best to discuss it with your trustee so you know where you stand.

I would love to but it was RSM Tenon and only just found out their current situation, which is why i presume they havent replied to my emails etc.

What would the fee's likely be and how much interest?

I think there is some confusion Silverline.

Are you stating that with the additional funds you believe that your debts can be paid back in full?

If so, as TDA advises, you will be liable for payment of:

Trustee's fees - an estimate of which would have been provided to you at the outset of your Trust Deed (although these can change with creditor approval)

Balance of your debts - as per claims adjudicated by your Trustee.

Statutory Interest - 8% per annum (so £800 in the first year on debts of £10,000 for example)

If you are simply asking if the additional funds can be utilised to off-set arrears of your contribution, then generally no, as it counts as additional funds/assets which your Trustee would ordinarily be entitled to in any event.

No sorry. With my current arrangement i wont pay the full amount before the end of the agreement. I cant increase the monthly amount because the increase in pay is actually lump sum bonuses / finders fees i.e. not a constant increase.

All i am asking is can i pay more a month to bring me back in line with the agreement, allowing it to be concluded in July as agreed at its commencement.

....with some large lump sums over the course of the next 6 months

Hi silverline

From the information provided, you have arrears in contributions which will require to be paid. I think your trustee will look on any additional income from bonuses etc as just that and may seek an increased payment from you in addition to the contributions.

Probably best to speak with your trustee to clarify the position.

Mark

Ok mark thanks. I have tried several times now but no joy. As you may have read it is with ram tenon and understand there is a transitional period just now. What if a third party / friend decided to help me out? Would that be acceptable?

Hi silverline.

That may well be acceptable and in the best interests of all involved.

Like the other matters highlighted, it will need to be discussed and agreed with your trustee once you've established contact with them. I believe the transitional period you mention is over.

Why am I not getting any replies then? Do you know how to contact them via email?

There's obviously an issue with the contact details being used currently silverline.

Was it yourself that contacted Kevin directly via the site contact form for him last night? If not you might want to try that as he's helped a couple of people in this way while everything settles down there.

Yea it was but havemt received a reply?