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Scottish Trust Deed Forum
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Topic starter
26/03/2013 11:32 pm
Hi,
I have a couple of questions i wonder if anyone can help me with.
We (my husband and I) entered a Trust Deed in November - it's for 42 months.
We have seperate amounts to pay but income & expenditure seemed to be done jointly.
My husbands grandfather passed away in January and left his mum some money - she would like to gift some money to us to help us out. It wasn't a huge amount of money but is enough to potentially settle my husbands trust deed early if the IP/creditors were to agree to the amount. ie we are due to pay back approx £8k and this is the max amount she could give us.
So my questions (excuse my ignorance about workings of Trust Deeds):
1. Could my husband's trust deed be 'paid off' and discharged but mine continue?
2.What is the chance of them agreeing to the amount? What are the considerations?
3. If this were to happen how would payment work - i.e. we would then have the amount of my husbands trust deed 'free' - would they expect this to be paid towards mine of would this still be seperate?
4. Just out of interest (and I can live in hope) if my husband was to get a payrise would the amount I pay have to increase? ie
As you can see I am not really sure how the joint bit works.
Any answers any can provide would be appreciated.
Thanks in advance
27/03/2013 8:22 am
I think it's extremely unlikely any trustee would accept payment to settle after 4/5 months. The Trustee would need to look at the bigger picture and take account of potential windfalls, payrises in the next 3 years.
Legally, there would be no issue, however I would think it unlikely.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
27/03/2013 11:14 am
Thanks for your reply.
I thought that might be the case. Do you think if we were at least a year in that it would make a difference? As his mum wants to help I'm sure the offer will still be there next year. She will only give us the money if it's going to help us out though as she sees us struggling month to month with 2 young kids to cloth/feed etc.
Thanks again
27/03/2013 11:28 am
Hi NoMoreCredit.
We've read people report very different experiences on this subject in this forum.
Individual trustees seem to take quite different views about lump sum payments from third parties being used to bring a protected trust deed to an early end.
With that in mind, it's probably best that you directly seek the opinion of your own provider as that's the only viewpoint on this subject that will actually matter to you.
I hope that you get a positive response.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
27/03/2013 11:39 am
Hi NoMoreCredit
It's a very individual decision for a Trustee to make and as TDA has advised it would be best to speak with your Trustee regarding this.
I would agree with Mark in that at this early stage it would be unlikely that the Trustee would accept this kind of proposal.
Let us know how you get on.
Chris is not currently posting in the Trust-Deed.co.uk forum.
27/03/2013 1:47 pm
Even if your husband's IP agreed, wouldn't the money saved, or at least a part of it, end up being swallowed up by an increase in your own contributions?
27/03/2013 8:01 pm
Not necessarily Jinty. To some extent disposable income may still be divided between a couple when one is in a trust deed and the other not.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
28/03/2013 7:24 am
I think it is worth asking the trustee. They may be willing to seek the opinion of creditors, who may well prefer to get a lump sum now rather than later. After all, there is no guarantee that your circumstances wouldn't change for the worse. I don't really see why the length of time you have been in the trust deed should make any difference.
Your trust deed is not joint in any way. If your husbands finished early then it shouldn't affect your contributions, which should be based only what you can afford as an individual. However, it would be worth confirming this with your trustee beforehand.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
Topic starter
28/03/2013 11:57 am
quote:
Originally posted by JintyMcSkinty
Even if your husband's IP agreed, wouldn't the money saved, or at least a part of it, end up being swallowed up by an increase in your own contributions?
That's what I was wondering/asking but seeing as most of the initial response to the likelihood I didn't see the point in asking about the answers to the other questions I asked.
Topic starter
28/03/2013 11:59 am
Thanks for your reply Kevin.
Might contact the IP and see what their thoughts are.
Topic starter
28/03/2013 12:06 pm
Sorry missed out thanks to TDA & Chris.
Thanks for all the replies guys.
The potential windfalls/pay rise aspect interests me. How can the IP know about this? I suppose for me being a public sector worker the likelihood of a pay rise is looking slim but for non public sector / non pay scaled workers how can they even begin to guess? Eg the company my hubby works for could potentially lose a contract that makes us 80% of their business - if they lose it they'll be no pay rises or jobs - without knowing the company how can the IP even begin to know the potential?
Just curious really.
