In terms of whether the Trustee will allow an early conclusion to your Trust Deed as a result of the payment of extra funds it is unlikely but dependant on the initial agreement you had with the Trust Deed company.

Many firms issue what are called 'Minutes of Agreement' or 'Basis' documents which detail the terms and conditions of the Trust Deed prior to your signing. If you received such documents you may find your answer there.

Upon receipt of your last payment the Trust Deed company will begin closure procedures and issue any available dividend to your creditors. So long as you have abided by the terms of your Trust Deed creditors will no longer be able to pursue you for the debts. There have been cases where no dividends are issued to creditors as a result of the Trustee's fees but please be aware that even in this situation your creditors would not have legal recourse against you. Please also note this can take anything between 4 and 12 weeks (although 6 to 8 is average) after the payment of your final contribution.

In terms of your credit history, technically the signing of a Trust Deed should not be recorded but creditors will have remained entitled to lodge default notices on your credit history which can remain there for a period of 6 years. The impact any such default notices will have on your future ability to get credit (should you desire it) generally remains dependant on the market - which at the moment is quite poor and therefore at present individuals coming out of Trust Deed's will initially struggle to get credit.

Just my thought but I am sure the resident experts on the forum will be able to provide you with further details.

Hi LSO782,

I agree that it is unlikely that your Trust Deed will end sooner if your circumstances allow you to pay a little more each month because your finances have improved.

By entering a Trust Deed the bargain is really that you pay what you can afford for the agreed period and the creditors write-off the balance that isn't paid.

As such, if you can afford to pay a little more, it wouldn't seem unfair that you are asked to do so. No harm in asking your Trust Deed company about this though... you never know.

Hi LSO782

What the Mole and trust deed assistant have written above regarding the term of your trust deed is correct.

My understanding of the credit reference file is that a protected trust deed is also registered for the 6 years, not just default notices - I believe the ref companies pick it up from the Edinburgh Gazette notice. However, The Mole is right to say that the effect this will have on your ability to get credit in future is dependent on the market generally. However, I imagine there always will be sources of credit available for those with poor credit histories - it is such a big market after all - however the interest rates likely to be charged might be rather high.

With Credit Reference Agencies it is not just a case of 6 years from the Default Notice or the signing of a Trust Deed. The CRAs keep records relating to a six year period post any change in the situation.

For instance if a Trust Deed completes and a dividend is paid to creditors and the CRA still has a record of that debt/default then there is a possibility it could remain for a further 6 years.

Equally if an amendment is made to a CRA following discharge of the Trust Deed than that record could remain for 6 years.

I would suggest having a look at the main Credit Reference Agencies own websites (sorry not able to put links on this Forum) or approach Trading Standards or local CAB for an information booklet on Credit Reference Agencies and how to amend records. these booklets are FREE.

I am thinkg abou going down the road of a trust deed.
What I would like to know in details is what the insolvency practitioner will be doing right from the start?
what sort of searches do they do on me and for me?
Where do they get their information from with regards to my financial status?

Hi jalghu999

on initial contact, they will arrange a meeting to look at ALL options to see if the Trust Deed is the best option. The meeting is to allow you to discuss matters. The IP should then send you a letter with info on what was discussed at the meeting for you to review before making any decision.

The normal info required is details of all debts, copy payslips, mortgage/rent agreement, bank statements etc.

Hope this helps

Mark

Please note jalghu999 that in signing a trust deed you would be signing a legal document and declaring that you have disclosed any information about your financial status which might be relevant - for example all assets/liabilities/incomes etc.