I think all the expected fees if you remained in the trust deed would be for the funds to creditors and the trust deed fees combined.If a 3rd party is paying to bring forward the date of discharge then everything expected to be gathered in the expected duration still needs to be paid. Maybe the fees will drop a bit because of the reduced admin but the set-up part is most of the fees from previous comments I've read.

Welcome to the trust deed forum Lyndalou.

Lots of trust deed firms can and do allow people to bring a trust deed to an early end where a third party can introduce funds. It's discretionary though, they aren't required to do so.

There is an argument against it, in that there is some possibility that you might come into money during the next 27 months which could result in your creditors being paid back a greater percentage of the debts.

The argument in favour is that your creditors get paid some money sooner, and that they may get more as the trust deed fees are likely to be reduced.

You may wish to try to bypass the frontline staff and put your offer in writing personally addressed to your trustee. That would increase the chances of the man or woman at the top considering the situation and options.

Brilliant Thanks guys, i will give that a shot and will let you know what happens! Thanks again

Hi Linda

Thanks for your post. It sounds like great news that you have had the offer of help!

This looks like it should be a fairly straightforward question, but there's actually quite a lot of consider I am afraid. The first thing to say is that these are generic comments rather than specific to your circumstances.

As it stands you are insolvent and you've got an arrangement with your creditors that will see you debt free in 27 months time, presumably with a reasonable element of debt write right off. At the end of this time your Trust Deed will be satisfied. Having said this, we know that living on the tight Trust Deed budget isn't easy or pleasant.

As you say you now have the potential opportunity to settle early. You may want to consider that early settlement would only be beneficial to you if you can do so at less cost than completing the Trust Deed. But if you look at it from the creditors' perspective, why would they want to settle for less than they would get if you were to continue with the Trust Deed as planned?

In theory the creditors could ask to be repaid in full and they could also ask for Statutory Interest (which is charged at 8% per annum). If you were to settle early we would simply pro-rata our fees. In practice your IP puts an offer to creditors which is considered to be fair and would have a reasonable chance of being accepted. But to be attractive to them it would likely need to be better than they'd get by just letting your Trust Deed run on. So in effect you'd be paying a premium for the peace of mind of being debt free 27 months early. How much that is ÔÇ£worthÔÇØ to you is clearly a personal decision.

As I said at the start, it is a complex question. We'd be more than happy to talk through the options with you if you want to give us a call, and I am sure that this forum will be helpful in pointing out the pros and cons off different approaches.

Hello Sarah.

I don't think offering to pay less than the remaining responsibility to the trust deed was mentioned by Lyndalou? I'm speculating, but I think the perceived benefit from the perspective of Lyndalou is moving on from the trust deed (rather than paying less than would otherwise have been the case).

If that's the case, surely the creditors would get more than expected because the trust deed fees should be reduced due to the reduced term?

And if that's the case, wouldn't it be appropriate to put such an offer to the creditors?

Hi all

I'm also slightly confused.

It appears that the proposal is to pay the outstanding balance due against the Trust Deed, being the sum agreed at the start, early. This allows creditors to receive their dividend early and the trustee's fees to be reduced as they will not require to be in office for the full term. I don't see creditors objecting to this.

Mark

Hello all

It's really down to us establishing some middle ground that allows Lindalou to complete her Trust Deed early and that creditors are likely to be agreeable to, compared to the original proposed return and any other relevant circumstances.

We will look at any serious offer of payment and advise accordingly depending on the case an individual circumstances.

We are more than happy to take a look over Linda Lou's case and chat through the options.

I hope this helps?

Thanks Sarah.

That's quite a different response to the once that Lyndalou reports that she received previously when she tried to raise this subject directly, which seems like a positive development.

What contact point can she use to get a response more akin to yours than the one she was given on the telephone previously?

Hi TDA

If Lindalou wants to call through as ask for her IP George Lafferty, he is expecting her call.

Hope this helps?

If the creditors are going to receive their dividend (possibly a higher one) earlier, then it makes good business sense to settle early. The other thing to consider is that no job is 100% safe , and what if something happened that prevented you making contributions in the future? I am sure creditors would rather have the money now.

I phoned my Trust Deed company about a 3rd party willing to pay it off early and the following was explained to me.

The reaminaing payments would have to be paid in full in one lump sum should the creditors agree / not object to it being paid off early. She said there wouldn't be a reduction in the IP's fees as they were all agreed upfront when signing the Trust Deed.

I therefore put it in writing and I've received a response saying the creditors must be paid back in full, IE: 100p in the £ and not the 15p they would have received. There's interest of 8% added on as well as fees.

Effectively it's the equivelant of paying the rest of the monthly payments in full and on top of that paying all my creditors 100p in the £.

I am extremely disappointed in this written response to say the least as it contradicts the verbal info given.

Could someone please advise the best way of tackling this so a 3rd party only has to pay the remaining monthly payments in one lump sum ??

Hi Seany boy

Incredible. I seem to remember an old insolvency thing ( well quite new actually) A trustee under the trust deed acts primarily for the benefit of creditors, he also has a residual obligation to act in the interests of the debtor.

I cannot see firstly any justification for the decision and secondly where the rights of the creditors or individual are considered. Unless of course it's a guess that, in the remaining time, you would win the lottery!

Strangely we had a request for early settlement at the beginning of the month, requested proof that it was third party funds, received this and then received the remaining balance of payments under the Trust Deed on Monday. I would expect creditors to receive an enhanced and final dividend next week and the individual to be discharged at that time also.

Mark

I think you may have to write back again and make it clear that 100p in the £ is not available, only what is being offered. Ask them to put the offer to the creditors for you as they should be given the right to choose if they would rather have a lump sum up front.

Thanks Guys.

I sent a reply earlier today highlighting the fact that 100p in the £ wasn't available and wasn't what I was told over the phone. I was even polite enough to suggest maybe they just misunderstood my request.

Anyway I will post developments on here.

Thanks again.