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Scottish Trust Deed Forum
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Topic starter
03/08/2011 3:37 pm
Hi,
I am currently one and a half years into my Trust Deed and all is going well.
At the outset, it was agreed that there was approximately £26k of equity in our family home. It was pointed out that a payment for this amount would need to be made at the end of the 3 year period by one of the following means :
1. A full payment of £26k
2. An extension of 2 years to the Trust Deed and 24 monthly payments of £1083.00
3. The sale of the house.
Option 3 is not an option as far as I am concerned as my family are very settled and our house is our world. Option 1 is also a difficult one as being in a Trust Deed I believe I will struggle to get a loan or remortgage (NRAM mortgage) to pay the lump sum.
Option 2 will put us on the breadline and we will struggle to keep up the payments.
I have made enquiries at my work and I am able to take early retirement the month after the three year Trust Deed period ends. I would be entitled to a lump sum in excess of the equity amount.
My question is this:
If I take early retirement and take a lump sum, would I be able to pay the equity amount and end the Trust Deed or would the Trustee take all of my lump sum for the creditors ?
Many Thanks in advance
03/08/2011 5:02 pm
Hi again ghostofricco69.
It's an interesting question that you pose.
It seems to me that this is one of those issues where you'd want to get a written pre-agreement from your trust deed provider just to make sure there is no confusion or problem.
Having said that, I really cannot see why your Trustee would not agree to it. Your creditors get what they were promised (and agreed to) and are not missing out on anything as, presumably, you wouldn't take the lump sum unless it was to be used for that purpose.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
03/08/2011 5:37 pm
Yes, there is no way I would take the lump sum unless I could use it for the Equity and end the Trust Deed.
I will make enquiries with my Trustee and see what he says.
Many Thanks for your help
03/08/2011 10:14 pm
Please let us know what you hear ghostofricco69.
I'm sure that the question will arise again in the future and it would be useful to know how your Trustee reacted to your suggestion.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
03/08/2011 10:37 pm
There should be no problem in doing this. We have certainly made exactly this kind of arrangement with people a few times - though it is normally agreed in advance of signing the trust deed.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
