naturally the money wil come from a third party paid direct to the trustee or to me then the trustee!

i can afford about 300ish a month on my debts, maybe 325....this is what is being agreed with my trustee...havnt signed anything yet, however ive not mentioned to my trustee anything to do with my friend

providing it gets protected, do u think this shud be ok

also what happens to older defaults on ur account once a trust deed is finishedd..i know they stay on, but can they be marked as settled or not

Hello tony_jones and welcome to the forum.

Using a lump-sum provided by a third party is certainly a possibility to fund a Trust Deed.

Given the additional complexities involved I think it would be wise for you to take in-depth personal advice based upon your unique circumstances.

If you are happy with the Trustee you have selected there is no reason that I can see why you would not discuss this idea with them in advance of signing a Trust Deed. Better to know where you stand than to go into the Trust Deed with your fingers crossed.

In terms of your credit rating anything on there will stay for six years. We are not credit reference agency experts but there are things that can be done to layer some good credit history on top of the previous difficulties which will help you to rebuid your credit record if that is important to you. Recent events on your credit file tend to carry more weight with lenders than older events.

Hi Tony

TDA is correct, whatever option will have little effect on your credit rating. In addition, I cannot see any Trustee agreeing to a lump sum in the circumstances you describe. Effectively you will be saying, my income allows for a total contribution of between ?ú10,800 & ?ú11,700, but will you accept ?ú8,000 instead up front.

Mark

Hi Mark,

I think we have read Tony's post in different ways.

My reading is that he may be able to afford ?ú300 per month (or ?ú10800 over 36 months). I then understand that in around 12 months time a friend may be prepared to offer ?ú8000 to help bring the Trust Deed to a conclusion.

If this was the case there would be 12 payments of ?ú300 and an ?ú8000 lump sum. This would total ?ú11600.

If I have read this correctly do you think this would represent a scenario acceptable to a Trustee and Tony's creditors?

Hi TDA

I think your right. I should have expanded slightly.

A Trustee may be concerned that after a year there is the potential for a wage increase ot other income source, which could result in an increased contribution and the lump sum payment would/could be seen as a way of avoiding the increased payment over the period. However, this could be countered by the fact that the Trust Deed would be completed early and therefore fees would be less, so the creditors would receive more.

On the basis that there are no expected unusual future changes in circumstances/income and the payment came from a third party, then it certainly could be a possibility.

Mark

I agree with Mark, this sort of thing can certainly be arranged, but a trustee has to be careful to ensure that the creditors interests are being taken into consideration.

We would seek the agreement of creditors before discharging someone on the strength of a lump sum from a third party "buying out" the remaining term of the trust deed. Given the reduction in administration costs it is usually a good deal for creditors and we have successfully arranged this in the past - after all, from creditors' point of view, a bird in the hand....

thx for the advice on this. yes i meant it would be an additional 8k in the pot or whatever is needed to cover the rest of the payments. in terms of wages thats going to remain roughly the same for a good while. was just thinking wud rather pay my friend back and start rebuilding my credit after 1 or 1 & 1/2 years. plus means the creditors wud get paid quicker. not sure what bearing this would have on the fees for the set up of the fees. im trying to see if my friend wil lend me more sooner. but dont know if creditors consider a lump sum from the start. ive been getting a lot of hassle over the last few yrs and want them out my life as soon and as quick as possible. just figuring out my options. wud a lump sum from my friend work from start.

Hi Tony,

I don't think this type of lump sum arrangement will work at the start of a Trust Deed if your financial position is such that you can afford to make monthly contributions as well.

gd luck mate

im in a similar boat to you money and debt wise

tho id then be making the payments to the third party which wud haf originally been made to the trustee. just thinkn this way with decreased trustee costs potentially they may see more pence in the pound. but guess it may not work like that in the real world. my friend has been really helpful and basically said hed letme pay him bak in my own time. over 4 to 5 yrs. i have a wee kid on the way and i sort of underplayed my expenses in order to give creditos enuf pence in the pound etc. so when the wee one comes ill really struggle. hope this sheds some light on my situation. ultimately if possible either at the start or in six to 12 mnths id like to pay up the deed then just pay my friend back when i can. really my friend is my wifes parents who want to help me. i have no assets.

cheers every1 for the help...i am petty confused on this one...

Hi Tony,

I'm sure one of the experts will add their thoughts on your recent post soon. The extra information is very useful and it's great that your wife's parents are prepared to help you.

Hi Tony

in the circumstances you describe, I see no reason why this would not be possible and as stated previously, creditors would probably prefer this to waiting for 3 years for payment.

A bigger and quicker payment to creditors usually wins the day.

Mark

I agree with Mark - it would need to be run past your creditors but I'd be surprised if they weren't happy to accept a lump sum from a third party instead, even at the start.