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Scottish Trust Deed Forum
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10/02/2012 12:52 pm
hi, I signed my trust deed 16/05/2009. My first payment was delayed at advice of Trustee to give breathing space. I enquired about clearing it early last year but was told only if full debt could be paid with interest. My account manager however checked with trustee and told me I cud make the remaining payments after 16/05/12 as official 3 years was up. I have discovered my job at risk and will be made redundant at end of May. Will be paid extra 3 months wages at that point with redundancy payment about 6 weeks later. Trustee company now saying I cant make the final payments after 16 May which could mean me losing a substantial redundancy payment. Is this correct? It would be dreadful to have gone through the last 3 years and then be further punished by losing my redundancy too.
10/02/2012 1:30 pm
Hi Erul.
Welcome to the trust deed forum. I'm really pleased to hear that you are approaching the final stages of your trust deed, but sorry to hear that you are facing redundancy.
It's really a matter for your Trustee whether or not they are prepared to accept a lump sum a little early to clear remaining payments which will be due to your trust deed. We've seen plenty of examples where this has been deemed to be acceptable, but I don't think it's something to which you're entitled necessarily.
If you receive a lump sum prior to your discharge it is likely that you'll need to make an extra contribution to your trust deed. With redundancy payments you usually get to keep the statutory element of the payout (to cover you while you look for new work) with any additional amounts being paid over to help repay your creditors.
I can understand why you will feel punished by this, but a trust deed does only write off the debts that you cannot afford to repay. Having said that, the timing of all of this seems very unfortunate from your perspective and must be frustrating for you.
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10/02/2012 3:35 pm
Do you know what your contractual arrangments are regarding redundancy, Erul? Do you get more than the statutory minimum?
I don't see why you should not be able to pay up whatever is necessary after your 3 years is up and then ask for your discharge asap - definitely worth approaching them on this point again I think.
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