Hi Mapleleaf

the best option may well depend on the equity (if any) in the house.

The Trust Deed process is fairly straightforward. You should arrange a meeting with the IP firm who will run through this and explain exactly how equity will be dealt with. They will need sight of your bank statements, payslips etc. Don't worry too much about the cars as these appear from what you say to be necessary for work etc.

Mark

Hi mapleleaf,

A couple of thoughts to add to Mark's comments...

The content of this forum suggests that Trust Deed firms deal with equity (in house and cars for example) in different ways. We, at the site support team, feel that anyone entering a Trust Deed should understand exactly where they stand when they sign the document.

As a result of this we only feature firms who are prepared to set out in writing, in advance, exactly how these things will be dealt with. The potential for nasty surprises is therefore removed.

If you decide to proceed your Money Advisor may well point you towards a particular firm which you may or may not decide to use. If you do use them please check with them that all of these things will be put in writing to you before you sign the Trust Deed.

Like all other services, providers of Trust Deeds vary in quality and commitment to providing a decent level of communication and service. It may be worth speaking to a few firms to decide which best matches your needs for what will be a fairly extended period (normally three years).

The Trust Deed company will organise a valuation of your home.

Reviews will take place periodically during the Trust Deed to account for changes in your circumstances.

Thanks for the advice. I don't think there's currently any equity in the house. The mortgage is 67000 and a secured loan balance of 44000 leave -1000 if the house is worth 110000.

Hi Amy,

This site and experts provide very valueable information, all recommended, but how do you choose between Mark, Kevin and Julie? thanks

Hi Amy,

This site and experts provide very valueable information, all recommended, but how do you choose between Mark, Kevin and Julie? thanks

Hello mikeecho,

That's a really tough question!

We've visited all of them and feel comfortable that, both as individuals and as part of their teams, all are committed to providing high standards to anyone who chooses to entrust them with such an important role.

We've also received good feedback on all of them from previous visitors who decided to choose them.

Perhaps it would be worth reading their interviews (on the left-hand menu) to see if any of the information each of them provides stands out in particular for you?

Hi mapleleaf,

If there is no equity, and you decide to go ahead, you will want to be provided (in writing) with confirmation that the situation will not be revisited towards the end of the Trust Deed. Get this before you sign a Trust Deed.

We understand from our experts that this is a position that most creditors are comfortable with provided everything is out in the open.

Update:

Just been to see my local council's money advisor and it didn't turn out as I expected. I get paid 4 weekly and all the bills are monthly, so I calculated my income monthly and it came to around ?ú150 spare income. However, she argued that in reality it doesn't work like that because you get paid 4 weekly and therefore get less per wage than a monthly pay would bring, you should compare the 4 weekly income to the monthly outgoings.

I can see where she's coming from but that pretty much means I'm screwed as it leaves me no surplus income to enter into a Debt Arrangement Scheme or Trust Deed. And I'm not keen on going bankrupt. She's left me to "mull it over" over the weekend.

Am I likely to be able to go down any path other than sequestration? On the one hand, it's an easy way out (other than the loss of my home, despite there being no or very little equity) but I want to try and make some contribution towards the debt and my situation may improve over the next year or two as I'm looking for a new job with increased income (I work in IT), there's the chance of some "homers" for additional income and my yearly pay increase of 2%.

Advice/thoughts appreciated.
Whilst a new job and homers aren't guaranteed, it would be a bonus to pay towards any debts.

Hi mapleleaf,

I can understand on a practical level the advice that you have been given. A lot of people who get paid every 4 weeks find it difficult to manage monthly bills... especially where standing orders or direct debits need to be set-up for a certain date each month. I guess this might apply to payments into debt solutions as well.

The normal way to calculate income is to convert it into an average calendar month basis (as you already did).

I guess if you find that you are able to manage other monthly bills OK you might conclude you could handle a monthly payment, into a debt solution such a a Trust Deed, equally as well.

Hi, Mapleleaf.

One of the first questions you asked was "Can anyone tell me what the process is with a Trust Deed" You then went on to ask specific questions. To date I do not feel as though anyone as answered the question relating to the process. so without boring anyone with the "legal" issues surrounding the Trust Deed i will explain how I expect advisors at the CAB where I am a Director and Treasurer to respond in "layman terms"

Firstly by sisgning a Trust Deed you are making yourself "Insolvent" - you cannot pay your debts as they fall due.

On signing the Trust Deed you "convey" (hand over)your assets to the Trustee to deal with on your behalf. comments above are correct from all parties:

e.g

Equity position needs to be looked at and you should ensure that you know what you are signing, in particular to the asset being dealt with a the start of the Trust Deed. Equally some IPs deal with the vehicles in different ways (?ú1000 above = asset v required for work)

Once signed the Trustee should advertise in the Edinburgh Gazette (understand legislation may change in relation to this in near future).

Once Advertised, Trustee has 7 days to write to creditors with relevant information such as Income & Expenditure & Assets and Liabilities.

Creditors have a 5 week period dating back to Edinburgh Gazette to accept the proposal or object.

If accepted Trust Deed becomes protected. If rejected requires a third in value of the total credit or majority of creditors for the rejection to be upheld.

Things that might stop it becoming protected are:

Level of Dividend being paid
Level of Expenditure
Level of IP Fees
Creditor policy

If fails to become "protected" consideration should be given to:

a. Running Unprotected Trust Deed
b. Returning to previous position
c. Petitioning for Sequestration

Perhaps a useful discussion for the "forum" would be the merits of each of the above options in a failed Trust Deed.

I think there have been a couple of threads previously regarding the options if a trust deed fails to achieve protection, Insolvency Boy.

However, I am particularly interested in your option b - "returning to previous position" as as far as I am aware there is no mechanism for this to happen - a trust deed is legally binding and not cancellable - even though it would undeniably be a useful option. Is there a trick I am not aware of?