Welcome to the forum jonc.

If you inherit money during your trust deed it will "vest" in your trustee to be used to help repay your creditors.

In total you might have to pay:

1 - The total that you (personally) owed at the start of the trust deed.

2 - Interest on that debt.

3 - The fees and costs associated with your trust deed.

When I say "in total" that includes the money that you've already paid.

If there's a surplus it will be returned to you.

I suppose you could elect to try to settle your partner's trust deed if there was a surplus. As your partner's trust deed would not be "entitled" in any way to this cash there might be more scope for negotiation with the trustee than in your own case.

When you say including total paid what does that mean?will the money I have put in so far would be subtracted? Huw much interest would I need to pay? When we both started the trust deeds they were joint debts that were split, how will that affect my partners.

Hi jonc.

The money that you have already paid will count towards the total that must be paid overall.

Often interest will be charged at 8% per year (where it is affordable for it to be paid) but I understand that in some circumstances the original contractual interest rate might apply.

The joint debts will not have been split. You're each "jointly and severally liable" which means that technically you each owe the full amount of each of those debts.

I guess that means that, if you inherit before your partner is discharged, you might be asked to fully repay the joint debts from the money you inherit (if there's enough).

Probably worth seeing what our experts have to say on this when they next visit as I'm sure it's a situation that all of their firms will have dealt with at some stage in the past.

quote:

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Originally posted by Trust Deed Assistant

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The joint debts will not have been split. You're each "jointly and severally liable" which means that technically you each owe the full amount of each of those debts........

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[:0] Does that mean then if there was a joint 10K loan, then to settle they would each have to pay 10K making the amount to settle effectively 20K?

Tad confused now sorry, so would I have to pay back the original 25 k plus interest plus the rest of my fees in total 19k, sounds like I will be paying back about 50k!!!!

Hi jonc.

At the start of the process how much was owed by:

1 - You alone?
2 - Your partner alone?
3 - Jointly?

Sorry if I'm writing a little confusingly.

Hello pingpong.

No... if one individual were to repay the full balance on the account there would remain no balance for the other to repay.

So I would have to pay back the 25k plus interest then as that was the joint debt,and the money I have paid to my trustee already would get added to it and if any left over would be refunded do over the last four years I have paid out 15k yet only 5 k will go to my debt so I could still after all this is done end up paying 40k in total?

Hi jonc.

No... I think that's mistaken but I'm concerned that we are misunderstanding each other so it's probably best to get things clear.

Could you answer the debt breakdown question on my last post to you please?

All the debts were joint apart from my partners overdraft, on trust deed my debt 11k partners 13k jointly 24k if that makes sense?

How much was your partner's overdraft jonc?

How much was the total of the joint debts?

24k was the joint debt overall

OK... so the joint debts totalled £24000 and you have no other debts. That means your debts are £24,000. Tell me if this is wrong. Assuming it's right:

If you receive an inheritance during your trust deed (and before your partner is discharged from their trust deed) I think the most that you'd have to pay is going to be:

1 - £24,000 (your full debt). Plus,
2 - Interest on that £24,000 (you'll have to get your trustee to confirm how much that will be). Plus,
3 - The fees for your trust deed.

Lets assume that means £24,000 (debts) plus £8,000 (interest) plus £4000 (fees). That's £36,000 in total. Obviously these figures are just illustrative.

You've paid in £15,000 already, so you might be asked to pay another £21,000.

All of this might change depending upon how much your partner has already paid in also - that might reduce how much you have to pay over and secure an early exit for both of you. That's because if you fully repay the joint debts your partner will only be on the hook for the overdraft and there might be enough money paid over by your partner (after fees) to do that (plus interest on the overdraft). If your partner has an even greater surplus there already it might repay some of the joint debts also and reduce your liability.

I understand now, so I assume I would be discharged immediatly, would I have to give them all the inheritance ans get whats left after or just pay the final bill?