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03/04/2013 1:58 pm
My partner recently offered to my trustee to pay the remaining 16 months of my trust deed with a lump some circa to £6k, which could result in the trust deed ending. She offered this as we have read on the forums that generally this would be accepted. My trust deed was straight forward, no car worth, no mortgage and a straight monthly payment for 3 years.
Unfortunately for me my trust deed came back with 2 offers.
one- to close my trust deed, all debts must be paid plus 8% interest. This would not be possible.
two- pay the lump sum of 6k into my trust deed but it will remain open until the trust has ran its course. 6 monthly reviews will still remain in place and any bonuses, pay rises etc would result in a monthly payment being reintroduced.
Now she made it clear in her offer that if the remaining payments were covered then could this result in early release of my trust deed.
im just looking for a wee bit advise of how i could take this forward. The lump sum from her is only available to end my trust deed. Has anyone been on the same boat as me?
03/04/2013 3:20 pm
Hello JM2011.
Some trustees will accept this, others choose not to because it might potentially deny your creditors the opportunity to benefit from increased income or a lump sum that comes to you.
Really that leaves you in a position of staying as things are unless you and your partner are prepared to accept the terms of Option 2 (or come up with enough cash for Option 1).
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
03/04/2013 6:40 pm
I'm not sure i see any benefit in making the payment to pay off the trust deed, but remaining in it for the full term.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
04/04/2013 3:16 am
I had the chance to pay off early after a year in the trust deed,but there was too many complications, like you I thought that all it would take is the payments owed times whatever months were left,wrong. As Amy stated it was because the creditors thought that I could possibly earn more or have a lucky windfall etc that they wanted all the debt paid plus interest.
Like Mark states and what I was advised at the time was just to continue with the payments,I know we all want out of it as quickly as possible,but be patient,and take the correct advice from the experts on here I'm glad I did.
Trustee discharge march 2013
