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10/11/2009 10:59 pm
Hi,
I entered into a trust deed almost 24 months ago. When I entered into it, I could afford to pay ?ú295 per month to my Trustee.
Not long after, my partner and I fell pregnant, and had a son. When my review was carried out, it was deemed that my payments would fall to ?ú90 per month.
My trust deed also stalled for nearly 11 months, as the Student Loans Company started deducting from my salary when they shouldn't have. My IP stated that my contributions should stop til that was resolved.
I just want to know though, come the end of my trust deed, ie after installment 36, will I be discharged, or will they look to extend it, or ask for further payment to compensate for the drop in my monthly contribution?
Thanks
James
10/11/2009 11:50 pm
Hi James,
I'll be very interested to see Kevin or Mark's comments on this when they get chance to see your points; not least about the Student Loan.
I do suspect though, and I'm sorry to have to say it again this evening, that it would be best to contact your Trustee and ask where you stand and what's going to happen. The nature of Trust Deeds and the interpretation of how to deal with different events seems to vary quite widely between Trust Deed firms making it hard to provide a definate answer.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
11/11/2009 11:57 am
Hi James
In the Trust Deed proposal, you agree to make payment sufficient for a specific level of dividend at the end. If there is a reduction in the contribution, it is vey likely that the Trustee will extend the period of the Trust Deed to recover the shortfall.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
11/11/2009 9:12 pm
Hi James
Regarding your Student Loan - this should have been included in your trust deed so you shouldn't have to make any payments to that debt. The rules have changed since then so that Student Loans have special status and do not get cleared through a scottish trust deed signed after the law change (April 2008 if memory serves me correctly), but 2 years ago this was not the case.
Have they stopped taking payments - and indeed did they refund the amount they deducted from your salary, James? If not, it may be worth bringing this up again with your trustee.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
13/11/2009 8:12 pm
I started off paying ?ú100 a month on TD. I became unemployed and it was reduced to ?ú50 month. I was told that this would mean that my TD would last longer. It didn't, I was still discharged after 36 months. So you might be lucky like me. Hope so. [:)]
