Hi Bluerobin

What other options were discussed with you, apart from a trust deed?

Have you discussed your concerns with the company you spoke to? Or - more importantly - whoever would be the trustee in your trust deed.

Hi Candlewick
We spoke to our IP yesterday and raised this question with him however we were told that we could only pay weekly or monthly as thats how the payments were set up with the bank and that my pay had to be worked out on a monthly basis. I'm worried that we'll have little left after direct debits/food/travel and TD come off except for my 2 wages in one month at the end of the year.

No other options have been discussed with us. I know there are other routes we could take such as sequestration or a DAS but we would really like to pay off our debt in the fastest time possible, also my husband is applying for jobs in the financial services so bankruptcy isn't really an option. I have to say we're not too impressed with the level of information we've been given so far from the trust deed company. Most of what I know has been through this forum which is a god's send!

I will definately be taking this up with our IP this week before we sign anything.

Hi
I would speak to a second company, I spoke to at least 3 before I finally went with one represented on here. I had more debts and paying around the same amount per months as yourself over 3 years. Is it only one of you who is entering into a TD or are you both looking into this option? In my case it was only me.

Hello Bluerobin and welcome.

In my opinion you're not ready to sign trust deeds unless you understand the relative pros and cons associated with alternatives (sequestration and the debt arrangement scheme for example).

Do you know how long your payments would last in sequestration, or in DAS, for example?

If not I'd take further advice before making any commitment.

I think working out income on a calendar month basis for people who are paid four-weekly is commonplace. Averaging the income of a self-employed person is also common. Self-employed people will need to be careful to set aside money in better months to cover months when they make a little less.

Thanks so much for the advice folks! I think its clear from this that we need much more info before we are ready to go ahead and I will definately be contacting another company tomorrow for a second opinion.

Both of us are going for the TD, we've been told that my husband only just qualifies based on his average earnings. I know in better months we can put money aside for the slower months but we prob won't be in a position to do this until the summer and of course this is exasperated by the fact i don't get paid monthly! Its a bit disheartening as I thought we were nearly on the road to being debt free but I don't want to sign anything until I'm happy we can afford repayments!

Hi Bluerobin

The pay period is extremely important in calculating the surplus as it may show a false surplus figue which can cause greater issues than it solves. The other issues of course are the other options and the period of the Trust Deed should that be the option. Im extremely surprised that no other options were discussed.

Depending on assets etc, sequestration may be an option which would reduce one or both to 36 months as there is no minimum dividend requirement.

IP firms should discuss all options and then ensure the options, contribution, period etc are confirmed in writing to allow you to see what best suits you, not the firm giving the advice.

Best advise is always a face to face meeting to discuss all options and then have all these confirmed in writing before you make any decision as you only have one chance to get it right.

Mark

We often set up trust deeds based on 4-weekly payments with no problems if that fits in better with a person's pay period. I don't really see why this should be a difficulty for your chosen firm.