Hi shark01.

You shouldn't be paying any money directly to your creditors while you're in a trust deed, and they shouldn't be asking you to.

If you stop paying your trust deed your trustee might go after your wages, or they might bankrupt you. They might not discharge you for a long time, leaving you unable to settle your debts. They might discharge you fairly soon (months) but the money you've already paid over will be wasted. You've no real way of knowing how they'll react.

The thing is, you and (at least the majority of ) your creditors voluntarily became legally bound to your trust deed. Your trustee became legally bound to ensure that the terms of the agreement are met.

It's up to you of course, but at least you have some certainty as things stand.

Hi TDA, thanks for your reply there, I didn't know you worked in Sundays 🙂

I was also wondering if you have heard of occasions where larger contributions to the monthly TD payment have been made voluntarily in exchange for being discharged earlier?

For example paying double what was originally agreed at the start and meeting your total dept figure after say 2 years. Would a trustee agree to that.

As you can tell I just want this to be over, 4 years feels never ending!

Thanks.

Hi shark01,

Unfortunately It's not a case of simply doubling up your payments to pay to amount that you entered the Trust Deed with (£10,500) in a quicker timescale.

If it's the case that you can repay your debts in full then you need to pay the full debt, plus statutory interest per annum and then I'm sure the Trustee would have fees on top of this. You would therefore be paying back more than the original £10,500. If you want to double up on your payments and can afford to then you may wish to speak with your Trustee about it to get an idea of what would be required to enable this.

Before you singed the Trust Deed did your advisor explain all of your options i.e. Sequestration (Bankruptcy) to you? I can see that you want things completed as quickly as possible. At the moment your discharged from Sequestration after one year and you only make contributions for a three year period. I'm just wondering if you were only told about a Trust Deed or were you also told about Sequestration and a Debt Arrangement Scheme.

What's changed the way you are feeling about the timescale of your Trust Deed from when you entered into it only 4 months ago?

Hi thanks for your reply.

I would only consider (tightening my belt ie go on a very strict budget) to make larger payments if it was going to benefit me.

I don't fancy living off the breadline to make larger payments if I'm still stuck for TD for 4 years, otherwise there's no point.

I've been thinking of moving abroad to start a life, I would want to be dept free before I go and have a frsh start.

Sounds like I'm stuck though, do you know if you can ame TD payments from another country?

Thanks.

Hi shark01.

You can move overseas and carry on with a protected trust deed.

Part of what you committed to was the timescale. Your creditors stand to benefit if you come into money during those four years (inheritance, lottery win etc). For that reason some trustees would not be prepared to discharge you early unless you'd already fully paid the total of:

1 - Your debts.
2 - Interest on the debts.
3 - The fees/costs of your trust deed.

Hi shark01,

There are no issues with moving abroad and continuing with your Trust Deed. All you need to do is provide updated contact details to your Trustee.

I've got clients who live in Dubai, Australia, New Zealand and Germany to name a few countries.

Thanks guys.

Just another query.

I've tried calling my trustee again and get diverted to their manchester office - who are clueless when it comes to Scottish Trust deeds and I'm not confident that I have been given the correct information or that they have even updated anything (ie my new address) . They say that they will pass my information over to Knightsbridge insolvency previously Kelsom.

Has anyone else had problems with them and does anyone have an email address I can contact them on (I get an out of office reply)

I anyone else have problems with them?