Welcome to the trust deed forum georgen.

It's true to say that a trustee doesn't have to accept this type of early settlement. The are arguments that go for and against. For example:

1 - On the positive side, creditors get what they expected earlier and may even get a little more if the fees are slightly reduced.

2 - On the negative side, creditors may not benefit from any windfalls that you might receive between the point of early settlement and the point at which you'd normally be discharged.

It's really therefore up to you to persuade your trustee to bring your trust deed to an early end. I'd suggest writing to your trustee, personally, detailing the offer of a lump sum from a third party. Try to present this in a way that makes the settlement in the interests of your creditors as well as yourself.

Addressing your letter to your trustee personally hopefully ensures they personally consider the contents. This can sometimes elicit a different response to that which a frontline member of staff might provide.

I hope it works out for you.

Many thanks for the reply 🙂

Am I right in saying that the trust deed company have no option but to submit any offer of settlement to the creditors ?

I think they may need to be persuaded that it's a good deal for the creditors first.

Over the years we've seen examples of this working out and not working out. Different trustees seem to take a different view on this (and other) subjects.

Many thanks ! I'm guessing that I have to really have to state in the letter that the funds are ONLY available from the 3rd party for the purpose of settlement ?

Precisely... presumably it's an offer conditional upon early discharge?

For sure ! Ok, off to write a wee letter. Will keep you posted 🙂

Hi Georgen

I was in a very similar position. I made the point that the creditors would have
more money than they originaly settled for, paid immediately. Remember that the creditors are not paid until the trust deed is completed.
Most companies involved in debt recovery would favour something now over any uncertain future payment.
Who is to say that your payments will continue to be paid in full. Illness, changes of circumstances can come into play, good or bad?
A bird in the bush and all that.

I do think that the trustee should forward your proposal to the creditors. There should also be a reduction in trustees fees. This would also be attractive to the creditors

My trustee put my third parties offer of 115% of outstanding payments, to the creditors. They were given 21 days to object. Thankfully I am unaware of any who did.

Where it seems a little grey is what happens when some creditors object? Does the trustee apply the same rules as for acceptance of the trust deed? Or do they insist on having no objectors before making payment.

Either way, best of luck.

Hi georgen

Can you advise me why the Trust Deed was set over 42 months as opposed to 36?

At the current rate you would be paying £14,700 against debts of £17,100.

Mark

Hi guys,

Many thanks for the replies.

@Bowershall. Did you write a letter to the trustee directly ? This is the direction I'm about to head in, as everyone I've spoken to seems to think it's the best course of action.

@Mark. They added the value of my car ( value at the end of the trust deed ) onto the repayment schedule. Car is estimated to be worth 1.5k on completion of the trust deed, so that equals 6 x monthly payments. Kinda convenient I thought !

I have the letter written out and ready to send. Could anybody advise if they could very kindly have a glance over it to check that I've covered all the relevant points ?

Many thanks,

George

Hi George.

Why don't you cut and paste a copy onto the forum so you can get a mixture of feedback?

If you do, probably best to take names out.

Hi, sorry to barge in on this - but just say I owed 15k in total at the start of my TD to my creditors. Up to now there has been 5K collected in the pot from a mixture of payments and ppi claim returns. Could I offer 10k from a third party to my creditors for an eary discharge? I have 10 mths reamining on my td

Hi Tdeed1.

How much is your usual monthly payment?

Are there any assets that will be reviewed at the end of the trust deed?

Hi Georgen,

I spoke with the Trustee first as you have done. Then set out my proposal in writing.

Good luck