Welcome to the forum Bowershall.

It is at the discretion of your Trustee.

If they are happy for this to happen it would normally be a case of paying over a sum equivalent to your remaining commitment to the trust deed.

Do you have any additional commitments such as equity in a home or car?

I'm not sure it will make a huge difference to your credit rating as the trust deed will still show there for six years. However, it could provide you with a chance to start rebuilding some good credit history earlier than otherwise would have been the case.

Hi

Thanks for the quick reply. I will contact them on Monday and see what their thinking is.
Presumably, it would be better for all involved to receive the agreed amounts early. The creditors and the trustee could be paid now, rather than in 28 months time. It also removes the uncertainties as whether the remaining payments will be met in full.
Do you think I should propose this in writing?
There is no equity to consider in the house or any other assets of note.

Putting it in writing is a good idea Bowershall.

I think you stand a good chance for the reasons you mention.

There are some counter-arguments. For example your creditors would lose the potential to benefit from any windfalls that might come your way in the next couple of years.

Hope it works out. Please let us know.

Thanks again.
I will let you know how it goes.

The other benfit to creditors is that the trustees costs should be lower given that the trust deed is being cut short, so creditors should get a better return.

Hi
I have contacted the Trustee.
He informed me they will have to get in touch with the creditors to see if there are any objections.
So it would appear that early settlement by a third party, is subject to Trustee and creditor approval.
Fingers crossed!

Its not really subject to trustee approval as they have to put forward an offer if you make one,at which point its the creditors alone that decide yes or no.

Paul

Hi Bowershall.

Looks pretty promising to me. Your Trustee clearly has no issue with this so long as your creditors dont.

I hope so!
Do all the creditors need to approve?
Or is it percentage based?
Thanks for the info Paul.

Hi Bowershall

Good question as there's no guidance. Is it 50% or the trust deed 2/3rds or offer of composition @ 25p in the £.

I would ask the question if I were you and see what % they are using and why.

Mark

Hi all
I have written to the trustee about 10 days ago to make the offer of early settlement on a third parties behalf.
I have since asked him to advise me as to how long he expects to have a reply.
Can anyone advise me how long it this is likely to take?
I need to advise the third party.

Thanks again for all your help.

Hi there Bowershall.

I think this is mostly going to come down to how quickly your trust deed firm gets the ball rolling and deals with the situation.

I'd suggest you continue to contact them and request status updates (assuming you don't think you'll annoy them too much!).

I think we would normally send out the offer to creditors asap and give them a reasonable period, maybe 21 days though there is no set procedure for this, in which to reply after which if they do not object we would assume they are happy.

Thanks again for the advise.
I will give the trustee a ring to ask for his views on this, as he's has not replied to my email.

To update. I finally got a reply from the trustees. It seems they would expect to receive a sum equal to all remaining payments plus an extra £1000.
They say this will bring the total payable to 9p in the pound. This is seen as a figure that is acceptable to the creditor,
There would be no reduction in their fees.

I received no answer to my question whether all creditors needed to be on board for the proposal to be accepted. I do not know if there are any guidelines for this.

Another odd thing is that they expect the third party to pay the money first. If the proposal is rejected it will be returned to the third party.

Any comments and suggestions will be appreciated.