Hi jannie and welcome to the trust deed forum.

Sorry to answer your question with a question, but what would the source of the funds for this be?

The answer may make a difference to the options open to you.

Thanks for the quick response 🙂

The source would be a family member.

Hi jannie.

My opinion would be that there is no reason why they should not be able to pay off the remaining commitment that you made to the trust deed.

Your creditors would be paid off sooner, and should get more back because the fees of your trust deed company should be reduced.

However I'd suggest you wait for some further feedback from one of our other experts who personally handle similar situations and requests at their trust deed companies from time to time. There may be some technical complications regarding this that they identify.

Do you have any responsibility to repay a sum in lieu of equity or anything similar (or just the monthly payments)?

All i have are the monthly repayments which i have been struggling a little with, and a family member has offered to clear the remaining ammount in the trust deed as i would still have over two years left.

I've just been unsure as to weather that would be acceptable or if they would have to go back to creditors and pay the full original ammount.

Having to repay the full debt shouldn't be the case jannie.

Hopefully one of our experts will be able to explain how they'd handle this situation in reality when they next check into the forum.

This kind of deal is usually possible jannie, but your trustee would probably have to get the agreement of your creditors before going ahead. As trust deed assistant says, your creditors will presumably be happy to get some money back sooner than expected.

Hi Jannie

As Kevin states above I can't imagine your Trustee would have any problems with your proposal as long as the creditors had no objections.

Julie

I contacted my trust deed provider and enquired if a third party could repay my trust deed early, current remaining payments plus arrears total 17200 and was informed that the only way to conclude a Trust Deed early is to repay your creditors in full plus statutory interest. As a Trust Deed is a form of Insolvency, whereby you are paying back a proportion of your debt over three years, the Trust Deed cannot finish early without being fully satisfied. I even asked if this proposal could be put to my creditors and was informed quite abruptly no, any advice on this matter would be greatfully recieved

Hello again soapster68.

I think that some of the scenarios that have recently been discussed in the forum (on this subject of bringing a trust deed to an early conclucision) are in connection to circumstances taking a turn for the worse.

I just checked back to your previous posting on the site and I think your circumstances had improved which had resulted in an increase in your monthly trust deed payment?

I don't know if this might be the reason for the answer that you received and our experts might have a view to add on that.

Despite this it seems strange that a scenario that results in your creditors getting more money (due to lower trust deed fees), sooner, is rejected outright as you describe.

It is certainly possible to end a trust deed early, however the decision rests with your trustee, and by agreement with your creditors. Unfortunately if your trustee is not willing to consider this then there is not much you can do.

As trust deed assistant says, if there are other factors then this may have an impact on your trustees attitude. For example if you have had a pay increase at some point in the trust deed then your trustee may take the view that this may be fairly likely to happen again and would therefore not wish to allow early discharge upon payment of an amount by a third party.