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Clooney
Just Joined

2 Posts

Posted - 05 June 2018 :  16:08:10  Show Profile  Reply with Quote
A family member has offered to buy out my trust deed, over the period of the remainder of my trust deed I am due to pay about 6500 in payments. Would they accept this to close off my trust deed or will they want more than that. My total debt was 39,000.

TDA (Debt Adviser)
Trust Deed Expert



12512 Posts

Posted - 05 June 2018 :  16:35:35  Show Profile  Reply with Quote
Welcome to the forum Clooney.

I'm sorry to say that the only way to bring the trust deed to an end before four years is if the following total is paid:

1 - The full amount of the debt owed when the trust deed began.

2 - Interest on the debt.

3 - Your trustee's fees.

This total is likely to add up to considerably more than 39,000 (minus anything you've already paid in).

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Clooney
Just Joined

2 Posts

Posted - 05 June 2018 :  18:08:32  Show Profile  Reply with Quote
Thanks, probably best if I see out the payment plan I have in place.

Charles Gardiner
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Sharon Toal
Trust Deed Expert



264 Posts

Posted - 12 June 2018 :  13:40:44  Show Profile  Reply with Quote
Hi Clooney - under the previous regulations it was possible for a third party buy out contribution payments however this was changed under the Protected Trust Deeds (Scotland) Regulations 2013.



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Certiorari
Contributor

12 Posts

Posted - 12 June 2018 :  14:01:44  Show Profile  Reply with Quote
Hi Sharon, do you know why it changed?

An investment in knowledge pays the best interest.
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Sharon Toal
Trust Deed Expert



264 Posts

Posted - 12 June 2018 :  14:16:22  Show Profile  Reply with Quote

Trying not to be too technical ...

The 2013 regulations brought in a 4 year acquireda rule this means that any assets acquired over the 4-year period such as inheritance or windfalls are automatically conveyed the to the trustee under the trust deed.

It therefore made sense at the time when the legislation was drafted to ensure the minimum payment term follows the 4-year period (48 months) unless an individual can within a shorter period pay off all debt, interest and trustee fees.

Hope this makes sense.


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Edited by - Sharon Toal on 12 June 2018 14:17:55
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Certiorari
Contributor

12 Posts

Posted - 12 June 2018 :  14:24:50  Show Profile  Reply with Quote
Perfect sense, thank you.

It's a pity that creditors can't be offered an early settlement and make a commercial decision as to whether or not to forego their right to acquirenda. I'm sure some of the debt purchasers would accept 10p in the now rather than wait 12 months on the chance the individual wins the lottery.

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TDA (Debt Adviser)
Trust Deed Expert



12512 Posts

Posted - 12 June 2018 :  14:59:10  Show Profile  Reply with Quote
Hi Certiorari.

It was certainly common for creditors to accept such offers in the past.

There was a bit of unfairness built in though. Some trustees were more open to presenting such early settlements on behalf of their clients than others were.

We had some unhappy posts in this forum from people who were being denied an opportunity that others were benefiting from.

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Sharon Toal
Trust Deed Expert



264 Posts

Posted - 19 June 2018 :  09:00:01  Show Profile  Reply with Quote

Certiorari and TDA, I completely agree and the new legislative requirements make it virtually impossible.

What we have done in the past is to write to creditors advising that a third party is prepared to pay balance of contributions on the basis that no further contribution will be sought for the duration of the deed. Creditors are fully informed.

The individual is however still subject to the deed for the remaining term.


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