In terms of the length of the trust deed, as mark says there is no maximum period, 5 years or otherwise. However, that doesn't mean that a trustee has to agree to allow the trust deed to continue over a longer period of time.

The trustee has a legal obligation to act in creditors' best interests first and foremost. He may therefore judge that their interests are best served by not agreeing to a protracted instalment arrangement when it may be possible for them to get their debts repaid in full a lot more quickly by forcing the sale of the property.

At the same time, you have a right for your interests to be considered too, and if the trustee did reject your proposals and seek to force the sale of the property then you would have an opportunity to fight your corner in front of a Sheriff.

Fingers crossed this will not be necessary however.

Kevin

Are the creditors' interests not best served by getting paid in full instead of 10% of what they are owed?

Is my IP not obliged to put these proposals to creditors before considering their own interests?

Hi gresgow.

It seems that the creditors stand to be repaid in full whatever happens?

I think Kevin's point is that the creditors could be paid in full very quickly if the home were sold or mortgaged when it becomes yours.

The creditors might be paid in full much later via an extended repayment arrangement.

This is something that your trustee may feel that they have to consider alongside your personal preferences.

Tried calling my IP today, my Relationship Manager is on leave til Monday and nobody else was prepared to give me any information.

Have to stew til Monday. My next TD payment is due 02/10/12 when I had hoped to increase payments to the level required to pay everything in full. As I am unable to get any information I cannot proceed with any plans.

Starting to get cheesed off with this whole process!