Hi poprey

In short, no, as you are both bound by the terms of the trust deeds you are in.

Mark

OK thanks Mark, but I don't see what difference it would make if they are still getting the same amount each month

I wish I had thought of that at the start, because they are getting 2 fee's from us

Hi poprey,

Whether in a trust deed or not, why would the lender want to release either of you from liability?

It just weakens their security of repayment (or part repayment).

The only exception I can see is if the other person had already fully repaid the debt.

OK thanks TDA just a thought to ease the burden on my wife, but I don't understand the joint debt part as I posted previously, if 20K was the Joint sum then I would have thought when my wife paid 10K that would have been her half paid with 10K left for me to pay, but as I said they would still get the same amount each month as if we were both still in it, the joint part is confusing, if I can explain, my total debts are 42K but 22K of that is Joint, but what was explained previously is that we are both responsible for all of the debt, so in theory this would make the total debt 64K, am I way off the mark here.

Hi poprey.

The fact is that you don't owe half each of the joint debt.

You both owe the full amount.

That's not going to end until either:

1 - You've completed and been discharged from your trust deeds.

or/

2 - That debt has been fully repaid (by either or by both of you combined).

Try seeing it from the perspective of the lender:

Your wife pays off half the debt and is released from her liability for the remainder of the debt.

Following this you unfortunately:

1 - Lose your job.
2 - Become unwell and cannot work.
3 - Simply decide you're not going to pay your debts any more.
4 - Run away to Peru.

The lender cannot recover what remains owing to them.

But... if they hadn't released your wife from liability for the debt they can still potentially make a recovery.

Having two of you liable for the debt forms part of their security - having both of you liable therefore also formed part of their decision to lend to you in the first instance.

Hi poprey,

When it comes to joint debt a lot of people struggle to get their head around this and believe that they are only responsible for 50% of the joint debt.

Like others have explained, each individual is 100% responsible for the total balance of the joint debt.

If you had entered the Trust Deed on your own, the likelihood is the joint creditors would pursue your wife for the full balance of the debt. When your Trust Deed finished, they would receive a small payment and the rest of the balance your wife would be liable. In a situation where there is joint debt and it is a sizable amount it's always recommended that both parties consider a plan to protect them from this.

How long do both your Trust Deeds have to run?

Lol TDA running away to Peru sound good, but we would both go lol, thanks David, we both have 12 Months to pay out of 42

With only twelve months left to go, running away to Peru might be a bit extreme poprey!

Your Right TDA 12 months we will just slog it out, and to tell you the truth, I only started
With all the thinking and concerns since joining this forum, but the forum has been very good, maybe I am just worried in case there are hiccups at the end, again reading some peoples stories, a family member has said that I can borrow a couple off grand once I make another few month payments, but they are not going to give me the money unless I can guarantee that one of us will get out of the TD, is this possible for my Trustee to be able to tell me that before I hand over my daughters money

Hi poprey,

If you have complied with your Trust Deeds and have maintained the agreed payments per month then I think you are worrying for nothing. The majority of Trust Deeds run smoothly and without any problems. I think that any forum has a tendency to attract people with problems looking for advice and help rather than people who have sailed through a Trust Deed without any problems.

If you want a 3rd party to propose clearing your remaining payments then you need to speak with your Trustee. Some Trustees will accept a payment and some wont. They will advise if this is possible or not before the 3rd party hands over any money.

I would focus on making the remaining 12 payments and not worry too much about things.

You can ask your trustee if they'd consider such an early settlement poprey.

From the experience of people writing here over the years, some trustees will have an open mind to this and others will not.

Thanks David an TDA, you and Mark are doing a fantastic Job, thank you