Welcome to Trust-Deed.co.uk bribri.

I'm sorry to hear that your debt arrangement scheme hasn't worked out for you. If the scheme is ended a trust deed may become one of the options for you to consider.

Could you give us a little more information please so that we can help you further?

How much debt do you each have individually? (If you have joint debts include them in full for each of you: e.g. £1000 joint overdraft counts as a £1000 debt for both of you individually). I know you mentioned roughly 50:50 on this but it would be good to get as close to the real figures as possible if you can.

How much have you been paying into the debt arrangement scheme? How much do you believe that you can actually afford to pay towards your debts each month going forwards?

Are you both working and earning? Is one of you earning much more than the other?

Are you homeowners? If you are, is there much equity in your home?

Thanks for such a quick reply, our debts are split 55/45, we are paying £250 per month including the debt advisors fee. We have NO equity in our flat. We are both working and wife PT work earns approx £9k and I'm on £12k.

Thanks bribri.

As £250 has been a struggle to keep up with, how much do you think you can afford to contribute towards the debts consistently?

Hi TDA,

Its a little more complicated as we are also paying off old council tax debt that was not included in DAS, also come April and due to our sons age out tax credits are reducing considerably, if its ok can I contact you privately about this?

No problem bribri. My colleagues in the site advice team or I will be happy to work through the situation with you if you'd like.

It might be possible/necessary to include old council tax debt in a trust deed so that might change the situation somewhat depending upon the amounts involved.

The situation with tax credits is obviously very important as well if planning for the future.

Hi bribri and welcome,

It looks as though things are pretty tight for you, and may get harder if your tax credits are reduced. If you apply for a Trust Deed and it is becomes protected, or apply for sequestration, your DAS would automatically be revoked, so you don't hsve to wait until the Accountant in Bankruptcy revokes the DAS. Sequestration may be a cheaper option if money is so tight. I think you need to sit down and speak to someone who will go over all options for you.

Whats certain is you cannot continue as you are so get the advice suggested and make this the year you sort out the debts that are keeping you down.

How much will you be down without the tax credits?

How long has the DAS been running?

Paul

Never hurts to look at all of your options, bribri.

Unfortunately, I've a feeling that problems caused by loss of tax credits is going to be a common feature on this site over the next few months.

The loss of tax credits and the continuing rise in costs of everything else!!

I am glad we took action when we did,or the hole we were in would have been gigantic now.

Paul

I have to agree with Kevin, this is always a problematic time for anyone in receipt of tax credits...they go up...they go down, and sometimes folk have no idea why! Take time to meet with someone so you can get things sorted once and for all, and stop this constant worrying.

Thanks everyone for the replies, we are not the only ones going to be affected by big changes to tax credits this year, Im currently assessing all the debt liabilities we have to get a complete figure, once I have them, I will contact 1 or 2 of the TD experts on here to discuss best options, we would like to go TD but this decision has not been taken lightly, again many thanks to all the advisors on this forum