Settling a trust de...
 
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Settling a trust deed early

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(@chrisg144)
New Member
Joined: 8 years ago
Posts: 1
Topic starter  

Hey guys

Quick question, is it possible to settle a trust deed early? Having recently opened up to my family about my debt problem they have offered to lend me a lump sum to help get my life back on track. I'm 2years through a 4 year TD and would like it to be over asap.

Anything would be greatly appreciated [:D]


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 16 years ago
Posts: 4253
 

Hi Chris, welcome to the forum.

I'm afraid it is only possible to do this if the lump sum is paying off the debts in full, along with interest and the trustee's costs so far. Unless this is what is being offered then the regulations state that a Trust Deed has to run for 4 years minimum.

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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David Tannock
(@david-tannock)
Famed Member
Joined: 12 years ago
Posts: 2581
 

Hi Chrisg144 and welcome to the forum.

It is possible to end a Trust Deed early but I can cost you a lot more than if you allowed it to run its natural course.

As Kevin has already confirmed the legislation confirms that to end the Trust Deed early you need to pay total debts, plus interest and the costs of the Trustee.

Depending on how much debt you have and how much you have paid in to date this could be a lot.

In terms of moving on with your life, your credit rating will still be affected for a period of 6 years regardless if you come out 2 years early. Any default on your credit file remains there for 6 years.

I would speak with your Trustee about it and ask them to confirm what balance you would need to pay. Once you have a figure you can then decide if you clear it early or allow it to continue.

David is not currently posting in the Trust-Deed.co.uk forum


   
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