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Topic starter
26/07/2011 9:26 pm
Hello all,
I just have a pretty generic query:
I am over 24 months into my trust deed and my trustee has agreed to carry on with my reduction in payments, however he now wants to extend the deed in order to recuperate the agreed sums set out at the beginning. Pretty standard.
I've so far paid about half, and have another £5,000 to go. I've calculated that paying what I currently contribute would mean the trust deed will continue for an additional 20 months, so the total term will be 56 months. (However this is not outlined in the letter from my trustee).
What I'm concerned about is that if I call my trustee after receiving a pay rise, they'll increase my contribution - but it will continue to run for the additional 20 months.
For example, say my TD became protected after agreeing to pay £6,000. Over two years I'd managed to pay back £4,000. £2,000 was still due, but I was now paying £100 p/m.
£100 x 20 months = £2,000
However, what would happen if I got a pay rise at work, called my Trustee and the payments increased to £200? Would it then become
£200 x 10 months = £2,000
OR
£200 x 20 months = £4,000
This is a very loose example - what I'm querying is whether the payment term would be reduced if I could increase my payments? If not - surely Trustees can keep these things rolling on for ever more?
Thanks for any assistance in advance.
26/07/2011 10:35 pm
The term should reduce back down again, balamb, the extension is only to cover the shortfall on the original proposal.
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Topic starter
26/07/2011 10:36 pm
I also want to add, that I didn't mean paying more to end my TD early within the 36 months - however once I reach 36 months and the TD is extended, will increasing my payments shorten the length of the extension or keep rolling on?
Topic starter
26/07/2011 10:38 pm
Thanks for getting back to me Kevin. It's one of those "what if?" questions that goes through your head.
Thanks again for clearing that up for me - can always rely on the Trust Deed forum for help.
26/07/2011 10:40 pm
Hi balamb
Can I ask why your payments were reduced, as that should have a bearing on if your Trust Deed should be extended.
Even if it is, you should not have to pay more than originally agreed for your creditors, but I say that very hesitantly as I only extend Trust Deeds in extreme circumstances.
Shona is not currently posting in the Trust-Deed.co.uk forum.
Topic starter
26/07/2011 10:51 pm
Sure Shona,
Moved out of parents home and my costs increased considerably - increasing under my own actions, therefore I presume this is the reason of the extension. Saying they were reduced is inaccurate, I've been paying the same amount since I started - however I agreed to increasing my payments a year into my TD as I'd expected to have more money, however after moving out - like I mentioned - my expenditure increased so the payments stayed at the same (which I can manage) however the payment term has been extended to recoup the additional £5,000 of the agreed amount set out at the beginning of the Trust Deed.
27/07/2011 9:38 pm
Hi Balamb
If your creditors were offered the increase, then your Trustee is just trying to keep to the agreement. If the increase was not in the original offer to creditors, then I feel you have met your obligation.
Shona is not currently posting in the Trust-Deed.co.uk forum.
