Hello lizmil.

I guess the first observation is that your trust deed provider may not feel that a settlement along these terms is appropriate at this stage. We've had forum threads where the trustee has been supportive, and we've had others where they haven't been and prefer the trust deed to run its course as originally envisaged.

If the equity position was "fixed" at the start of your trust deed the trustee may be unwilling to amend that as the creditors may have agreed to the trust deed on this basis.

However, there is little harm in putting all of this to your trustee and trying to negotiate a little if you see fit. Remember though that the trustee has a duty to your creditors. The more attractive the settlement offer is to your creditors the more likely the trustee will be willing to take it forwards.

Hi lizmil,

I understand the position you are in.

It is unlikely the Trustee will get involved in negotiating equity at this stage, given that your proposal was sent to creditors which they agreed to. However, there is no harm at it does not cost anything to ask whether they would accept a slightly reduced amount of equity from a 3rd party. The worst that can happen is they say no. Perhaps a 3rd party could propose to pay a lump sum of £x which includs all remaining contribution plus whatever equity is proposed in the basis that the creditors shall benefit by getting paid sooner, resulting in less time costs and outlays which may result in the dividend not being reduced from the lower equity ingathered.

As I say it is unlikely that the Trustee will agree, but you can but ask. Worse case scenario the 3rd party just pays what has already been agreed.

thanks

I assume there would be less supervisory fees if things are concluded much earlier than expected so that would go in favour of a reduced offer or would the trustee still take full fees?

Paul

The Trustee works on a time and line basis. He fees projected at the start are the maximum they may take for the term. In theory it should be less fees over a shorter period.

Hi Liz

I think your calculations are wrong. If you signed last July @ £200 per month you will have paid approx 9 payments leaving 27 x £200 which would be £5,400 plus any equity. The revised figures themselves may make it impossible to conclude early.

The key part to the trust deed is the proposal you set out at the start as that's what creditors agree on ie total contributions plus equity = £9,200. On that basis I think it's unlikely the trustee will review the equity.

Mark

Unless you mean July 2011, Liz?

I agree with the other experts - the trustee is likely to look for payment of what was offered to creditors at the start, though there is no harm in trying to negotiate.

I went into shock when I seen your figures Mark, it was July 2011 I started my trust deed phewwww, panic over, my mistake.

I started in July 2011, and have made 20 or 21 payments so far, so 15 or 16 payments left to go.

I know I agreed to the equity at the start, but a conversation with my trustee yestarday, made me think it wasnt as she advised me that they did not have all the paperwork from my mortage provider, and that the equity would need to be assessed, Im waiting on a call back to have this clarified.

Might all be a be a pie in the sky idea, as I think I think my family, who might be able to pay this off as a 3rd party, will only be able to pay £3500, £4000 max, so looks like that will be short of what is required 🙁

thanks for all your help and advice 🙂

Best of luck liz, and let us know how you get on