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Scottish Trust Deed Forum
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Topic starter
12/05/2014 3:33 pm
My son gave my husband a lump sum in order to pay off his trust deed. He has just under 2 years to left to pay on it. He contacted the company to tell them he would like to clear it. They said he would need to get our son to write a letter stating that he is providing the money, and where the money came from. He has done this, and the letter was received. The lady who is looking after the trust deed, said she would send correspondence out in the next couple of days, and that the decision to clear it would have to come from the trustee. If this normal procedure, and can he refuse for any reason. If he gives the go ahead, how long does the procedure take. He doesn't have any arrears, or late payments.
12/05/2014 3:44 pm
Hi dt3005.
I'm afraid that the trustee may not accept an early settlement. I assume that the money handed over is equivalent to the expected remaining trust deed contributions rather than the total that your husband owes?
The options are:
1 - The trustee agrees to accept the lump sum and discharges your husband now.
2 - The trustee agrees to accept the lump sum but does not discharge your husband until the expected term has finished. This would enable the creditors of your husband to benefit from the receipt of any windfalls between now and then.
3 - The trustee isn't minded to accept a lump sum in lieu of the remaining contributions and the trust deed carries on as originally expected (unless that lump sum is enough to fully repay the debts, interest and fees).
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