Hi there thanks for your post.

It is an interesting one. When you sign a Trust Deed on of the conditions is that you may not obtain credit of over £500 without declaring you are in a Trust Deed. I can understand that this is slightly different in that it is a family member.

It's likely that the Trustee may require to obtain ID of the 3rd party for money laundering purposes also.

Finally, some firms do not allow you to simply pay off remaining contributions. Some will only allow the deed to come to an early conclusion if the creditors are being paid in full with interest. It all depends in how far through you are and what is outstanding.

I would advise that you contact your case manager and set out your intentions to them. They will be able to guide your through what you can and cannot do.

Is it just contributions remaining? Are there any assets?

Hi Rob.

Is the rule about credit one that pertains to clients of your firm particularly? We've often heard here that being in a trust deed doesn't place any restriction upon taking out credit (which of course isn't to say that it would be a good idea).

Hello pac111.

Lots of people have asked similar questions here over the years and, as Rob has indicated, it's at the discretion of your trustee whether they'll allow you to have a third party pay off your remaining contributions. There are arguments for and against.

I'd speak to your trustee to see what they say (and don't let that money come into your account without having an answer you're happy with from your trustee in writing first).

I have 11 months left to run if If I paid of my monthly payments I see from the forum that I probably wont be discharged till september anyway but I am ok with that, will they do another review in sept as I would imagine I will be financially better of due to lower monthly outgoings but not due to higher income, I take it if the money goes into my account my trustee will know about it

K

Hi paulc.

I'm a little confused. I think you may be using two profiles for this question?

Some trustees would discharge you more or less immediately after an agreed settlement with a third party was paid over. It's all down to what you can agree, if anything, with your trust deed provider.

If there's no agreement in place, the money hits your account, and you're still in the trust deed, they may well see the cash as a windfall that has to be paid over to them without any reference to reducing the remaining term of your trust deed.

Hi Rob.

Ignore my comment in my original response to you. Looking back over your post I can see that I misread what you wrote.

Sorry I jumped in there pac111 I have the same sort of circumstances going on my 3rd party are paying of my remaining payments, I dont have it in writting though so I will have to make a call.

Thanks for clarifying paulc. As the question was so similar and the usernames had similarities I took 2 + 2 and made 22!

The responses people get on this issue vary so it's always best to approach your trustee to see what, if anything, can be done.

It's also probably best to have the third party make the payment directly rather than it going via yourself.

Hi paulc - is there any point in a third party paying off your remaining payments if you wouldn't be discharged until the same time anyway?

To pac11 - I would suggest that you speak to your trustee first and see if they are agreeable to discharging you early based on funds from your father. Only once you are discharged get the remainder of the funds that are available from him for the holiday - no point in risking losing this money.

I think Rob may be getting confused with the rules regarding taking credit whilst sequestrated (though the figure went up to £1000) as there are no such rules in a trust deed.

Thanks for the reply`s, I have not spoken to my trustee yet but in the same boat i don`t want to tell my dad that i am in a trust deed, I take it if i explained this to them they would still insist on it coming from a 3rd party directly or would they be understanding?

Does that mean then that i cant take the loan from him? I would imagine if a 3rd party was to pay anything you would be expected to pay them back anyway?

Hi pac111.

Your trustee may well be understanding on that point. Best to ask them about it directly to confirm.