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Scottish Trust Deed Forum
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Topic starter
27/01/2010 12:40 pm
Hi,
I started a trustdeed just over 2 years ago. It was suggested that it would take 39 payments at ?ú215 or 36 payments at a little higher. At that time I thought to play it safe and stick with the 39 at ?ú215.
Since that time, in fact before I was even 12 months into the trust deed I landed a job that pays higher so my monthly payments went up from ?ú215 and now I am paying ?ú278. I asked them if this meant that I could be finished with this after 36 payments but the person I spoke with on the phone said maybe, then I'm sure she said something about if it meets %10 of what is due. This confused me slightly because the ?ú215 over 39 months was going to be a lot higher that 10% of what was due.
I guess what I am looking to know is 2 things, should my payments stop once %10 has been reached?
If my monthly payments have increased, can that in turn shorten the length of time that I make these payments for or am I tied to 36 months if I'm lucky but 39 being more than likely as that is what the original agreement was for?
Thanks in advance.
27/01/2010 12:57 pm
Hello Wull,
The commitment is normally to pay what you can afford if circumstances improve during the Trust Deed.
This is only fair on the creditors who have agreed to write-off the amount that you cannot afford to repay.
I think that the figure of 10% is a bit of a red herring. I understand that Trustees have regulatory guidance that a Trust Deed should not happen unless creditors can expect to receive back at least 10% of the debt owed to them (after the Trust Deed firm have taken their fees). A lot of Scottish Trust Deeds will return significantly more than 10% of the debt to creditors because the individual in the Trust Deed can afford to pay more than that.
Your point about the three extra months is a very interesting one. Hopefully our experts can provide a view on whether the Trust Deed might revert to the more normal 36 months if increased contributions become possible.
How much debt went into the Trust Deed originally?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
27/01/2010 1:00 pm
I can't speak for your trustee, wull, but we would normally be happy to bring the term back to the standard 36 months, however not any further than this. The strict answer is that it is up to your trustee though, and they could hold you to the 39-month period if they wish.
Your payments certainly wouldn't stop simply because a certain percentage of your debts has been reached - the 3-year period should be considered as the minimum.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
Topic starter
27/01/2010 1:01 pm
Without paperwork to hand I'd say it was somewhere between ?ú25,000 and ?ú30,000.
I kind of figured it would be a case of if I can pay more to it then that would be the case, I don't mind that. It is that three month thing at the end I'm uncertain of and what doesn't help is that when I phone the office asking about this I don't get a straight yes or no.
Topic starter
27/01/2010 1:02 pm
I guess I'll have to wait and see 🙂
Thanks all.
27/01/2010 1:03 pm
It might be an idea to put your question in writing, addressed to the Trustee personally.
Hopefully that way someone with decision-making power will provide you with an answer.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
