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26/04/2021 12:23 pm
Hey!
I just valued my car today.
I have an outstanding TD balance of £7260.00 (33 months paying £220)
The car could potentially sell for £8500.00 - would I be able to use the car to settle my TD?
I found out the TD fees are included in my monthly payments.
Many thanks
BMC
26/04/2021 12:52 pm
Hi BMC,
I'm afraid that I think a few concepts might have got a bit muddled up here.
Your outstanding balance isn't 33 months of a £220 payment. That's just an estimate of what you'll pay based upon your current situation. The amount you actually pay could end up being more or less than this depending upon what you're actually able to afford to pay in the future. It's also important to remember that none of your debt actually gets written off until you have been discharged from your trust deed.
You're right to say that your trust deed fees will be taken from your payments, assuming that your payments continue as originally anticipated. However, if you want to finish your trust deed before the end of the four year minimum term then the total you've paid (including what you have already paid) will need to cover all of the following:
1 - The full amount of debt owed at the start of the trust deed.
2 - Interest on those debts.
3 - Your trustee's fees.
This isn't to say that selling your vehicle will not enable you to complete the trust deed early. It's just that we don't know the figures involved. You'd need to contact your trustee to establish whether a sale will generate sufficient funds for this to become possible.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
18/05/2021 4:46 pm
Hi BMC,
If you're the same BMC who had another thread about a 72 month TD, then it's possible the Trustee would settle early, so long as you had completed the first 4 years.
During the four year period from when you grant (Sign) your Trust Deed, you are under a period of acquirenda - basically any assets you come in to during this time (including cash) are required to be paid to the Trustee over and above your contributions. As TDA says, during acquirenda, the only way to be discharged early is to pay your debts in full, plus interest and Trustee's fees.
If the final 2 years of your TD are additional payments in lieu of asset realisation (for example, equity or the value of a vehicle), then, from month 49, your Trustee might be willing to accept a lump sum equivalent to this amount to bring the process to an early close.
The only person who can definitively answer your specific question is your Trustee (or one of their employees)
