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Topic starter
08/11/2011 9:25 am
Hi folks,
My wife and I should only have three months to go on our PTD but because we fell slightly behind when my wife was off on maternity leave, the IP agreed to extend it by three months...
However, a relative has offered to pay the IP the outstanding balance so we can be discharged earlier.
That would be helpful for us because of our mortgage situation.
We paid ?é£500 to protect any future equity at the start of the PTD so that is not an issue.
However, the IP have told us that the PTD must run for 36 months at least so the only thing we can do is make a larger payment in the 36th month to clear the balance.
Is that correct because we would love to have been discharged by the New Year if possible??
Thanks for your help
08/11/2011 9:30 am
Welcome to the forum BouncingBack.
I can understand why a trust deed firm might take that view. Bringing the trust deed to an earlier conclusion would potentially deny creditors the benefit of a windfall that happened to be received before the usual three year trust deed term had finished.
Having said that, I'm pretty sure I remember reading here that others had seen their trust deeds brought to an early end thanks to the payment of a lump sum in lieu of remaining contributions.
Perhaps this is one of the many areas where there is no exact position and Trustees use their judgement to decide.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
08/11/2011 3:12 pm
Hi BouncingBack
TDA is correct, this is up to the Trustee. The creditors are no worse off because of the lump sum, and the Trustee would advise the creditors of that and seek an early discharge. The ball is in theior court though.
Shona is not currently posting in the Trust-Deed.co.uk forum.
