Hello eleerin and welcome to the forum.

All of the debts that you mention would be included in a trust deed.

From the figures that you mention I'm pretty sure that trust deeds would be available to each of you. Our trust deed firm representatives may be able to confirm that. The next stage would be to work through the figures with an adviser to confirm the expenditure figures you have used fit within the usual trust deed framework.

Do you earn similar amounts from your employment?

Another option might be a joint debt arrangement scheme. If you went the fee-free route, and paid £600 per month, £60000 of debts could be cleared in a little over 8 years.

Hi eleerin

Looking at the figures, I think Trust Deed may well be an option, although DAS is also a possibility.

Northern Rock rarely pose a problem in trust Deeds as long as the proposal meets their criteria, so I wouldn't expect them to be a problem. From what you say, they may well have the casting vote.

In terms of the Trust Deed, if there was a shortfall, then this would become a claim. You would have the option of continuing with the sale or the trustee could deal with this on your behalf.

Re the payday loans etc, these can be added and are treated as normal creditors.

Hope this helps

Mark

Thanks for both replies.

My wife earns 1840 and I earn 1650 per month.

Could either of you tell me how much combined we would be expected to pay on trust deeds.

Hi eleerin.

To do that we'd need to go through your income and expenditure with you.

That's a pretty straightforward process, and wouldn't take long to do as you seem to have worked through the numbers for yourself already.

Thanks for the advice, had an appointment with Carrington Dean yesterday and the guy was very helpful. He reckons from the figures my wife and I would be suitable for trust deeds. The only problem may be that more than 30% of the debt is taking up by a loan which was added to our mortgage with NRAM(Northern Rock). Does anyone have experience with NRAM with regards objections to Trust Deeds?

I have one other query though, I have a fixed sum agreement on a car which he said would be eligible to be included in the trust deed. He also stated however that the car was in effect mine as there was no HP on it. Does this mean that I could sell the car and get a cheaper one. The value of the car is approx £3000.

NRAM use an agent (Grant Thornton) to process their trust deed proposals and have well-defined criteria as to what they will accept and what they will not.

This is closely linked to how much the IPs fees and outlays are, so if the adviser at Carrington Dean suggests that your trust deed will have to last for longer than the basic three years then it could pay to shop around before signing up.

On the subject of the car, what they are saying is correct - the car is an asset and the debt would be included as a creditor in your trust deed like any other. Normally cars up to a value of £3k will be ignored and not have to be sold as long as they are reasonably required (eg for travelling to work).
Why is it that you wish to sell the car, eleerin?

The reason for wanting to sell the car is that we have two cars the one I have already mentioned and another which is on lease. If I could sell the car I could purchase two cheaper ones as we both need a car for travelling to work.

Hi eleerin

As stated, NRAM work to a specific criteria to accept Trust Deeds and as long as the proposal submitted is within that criteria, there should be no issues.

NRAM are a fairly common creditor in Trust Deed proposals and I can't think of one objection we've received in the last couple of years, as long as the IP sticks to their guidelines.

Mark

If it means that you are saving money by no longer having to pay for the monthly lease car then I doubt your trustee would have any problem with you doing as you say.

Of course, it may just mean that you have to pay more into your trust deeds if your expenditure goes down.