Hi again Bob,

I'll try to address your points using the same numbering system. I'm sure our experts will have further thoughts for you shortly...

1 - It should not matter that you are currently up to date. Sadly it's quite common that people manage to keep their payments up to date but are relying on the use of credit to do so.

2 - Your Trustee may want to see your rent agreement to confirm your rent payment. I cannot see that they would want to notify your Landlord of a Trust Deed.

3 - Certain banks are happy to offer accounts to people who are in Trust Deeds. I'd suggest that you have a look at the Co-op Cashminder account; others here may suggest alternatives.

4 - Any "event" stays on your credit record for six years. None of us are credit-rating experts and this has been discussed previously but our understanding is that the Trust Deed itself will no longer be visible on your credit record six years after it starts.

5 - A pre-paid card is a very good idea especially for internet purchases/bookings etc and is certainly allowable.

6 - As no legal action has commenced it would seem very unlikely that legal action could be completed by any creditor prior to a Trust Deed becoming a Protected Trust Deed.

7 - There are different ways to work out the contribution amount. You should ensure that sufficient allowance has been made for you to be OK for the three year duration. Anything over and above this will normally be contributed to the Trust Deed. You may be able to keep a proportion of any bonus/overtime payments you receive depending upon the firm that you choose.

Thanks TDA that's very helpful. I look forward to further comments if the other experts have anything to add.

Cheers

Hi Bob

The trust deed assistant is right on all counts - though I might add one or two specific points.

Qu 2 - if it is stipulated in your tenancy agreement that you must notify your landlord about any insolvency arrangement then it is up to you to do so, otherwise you could be breaking the terms of your lease.

qu4 - This raises an interesting point - as I understand it (though I may be wrong) being discharged from the trust deed is not routinely noted on your credit file, though it can be if you request it. However, by doing so it will just mean that evidence of your trust deed will stay on your file for another 6 years after the trust deed ends, therefore it would seem wise not to so that your credit file should be clean after 6 years from the start of the trust deed.

qu 6 - just to clarify further, a wage arrestment can pnly be done after a decree has been granted in court and a charge for payment has been served and expired. This takes several weeks so the only danger would be if a creditor had already gone part of the way down this road before the trust deed is signed.

Hope this all makes sense - some good questions there bob, you are obviously thinking this through properly which is great. It does sound as though a trust deed may be a very good option for you from the information you have given. Please do feel free to get in touch with any of the experts here if you would like assistance in taking things further.

Kevin

Hi Bob, weÔÇÖre all here to help answer any of your questions so ask away!!

1. It makes no difference whether you have been managing to maintain all your payments or struggling to pay them, your creditors will treat you no differently. At the least you will be seen to dealing with your debt rather than sticking your head in the sand!

2. My firm would only require a copy of the tenancy agreement, there would be no need to contact the landlord, provided that the contribution payment was maintained.

3. Opening a new account with a non creditor is recommended. Unfortunately itÔÇÖs a case of shopping around. I have known a few people that have been able to obtain online bank accounts whilst in a Trust Deed, so thatÔÇÖs certainly worth looking in to. Also building societies have a good range of accounts.

4. Again as TDA states none of us are credit rating experts, however I would also add that as you havenÔÇÖt defaulted on any of your payments you may find that the date of the default will be the relevant date rather than the date you sign a Trust Deed, although I would assume that there wouldnÔÇÖt be a huge difference in the timing.

5. There is no restriction on taking on new credit whilst in a Trust Deed however it may prove difficult to obtain any, and itÔÇÖs something that I wouldnÔÇÖt recommend. A pre-paid credit card is a good idea though and I canÔÇÖt imagine that any Trustee would object to this.

6. As your payments are up to date, it is extremely unlikely that any of your creditors would have time to take any kind of action against you prior to signing the Trust Deed.

7. The way our firm handle disposable income is that we would sit down and go over the income and expenditure in fine detail and ensure that the monthly allowances are sufficient to enable the agreed contribution to be paid for the three year period. Like most other firms the income and expenditure would be reviewed every six months to ensure that there werenÔÇÖt any material changes to the figures previously agreed.

Julie