Hi toomuchdebt,

Two thirds of the creditors will need to agree (or fail to object) to the fees being proposed as part of the Trust Deed.

Your Trustee will not want your case to fail to become protected because their fees are unrealistically high and will therefore base them on their expected costs and what the market will accept.

Will your creditors receive a dividend of at least 10% of the debt total?

As I understand it fees vary from firm to firm and case to case. I'm sure one of our experts will be able to provide further insight on this.......

Hi I have ?ú55000 of debt to various creditors, I will be paying ?ú650 a month which is me at my limit. I`m just concerned that this will not be enough for my creditors, if i could aford to pay more in to it I would after all it is my debt. I am coming up for my 5 weeks shortly and the stress is getting to me, is it going to be protected or not.

Well 36 payments of ?ú650 comes to ?ú23400. Even with ?ú7000 of fees that will leave ?ú16400 for your creditors; a dividend of around 30% which is considerably more than many actual Trust Deeds that do become protected.

Fingers crossed for you and please let us know when you hear.

Thanks Trust deed assistant, I will keep you posted.

Hi toomuchdebt

TDA is correct, although I would agree that fees of ?ú7,000 appear excessive. I would expect fees to be well below this figure for a standard case. The ?ú7,000 may apply if there was considerable other work, trading issues etc.

I think at the levels of debt and contributions mentioned, I would expect the Trust Deed to gain protected status.

Mark

Hi Mark
As far as I`m aware it has been a straight forward trust deed if there is such a thing, I did think it was a bit excessive myself but I`m no expert. I will just need to wait and see, I dont know exactly what tasks/expence the trustee has to carry out but if the trust deed becomes protected surley there is no more outlay to the trustee other than letters.

Thanks for all your advice, it really does help

Hi toomuchdebt

No problem, always glad to assist.

Even allowing for protection of the Trust Deed, property issues etc, it still appears high. However hopefully the creditors won't query the fees and the Trust Deed gains protected status.

Mark

Mark

Hi I contacted my trustee today to see if there had been any objections to my trust deed going protected, there has been no objections so far and my 5 weeks is up by the end of business tomorrow. Can you tell me if it is normal for objections being left to the last day?

Toomuchdebt

Hi toomuchdebt

I'm glad to hear there have been no objections, however there are a lot of creditors who are dealt with by The Insolvency Exchange who can and have been known to issue objections on the final day.

However this is worst case scenario and I'm sure it will be fine as it is more likely that objections would come in before this.

Stop worrying!

Mark

Sounds like good news toomuchdebt.

Nearly there.

LOL toomuchdebt- wish you could see my IP's fees, total is over ?ú8000, think you got a bargain[:D]

Hi eoin8008 I might have got a bargain as you say but surely someone must monitor these companies, or is just a licence to print money from people who are already at their lowest point. I was also told that any extra money I have e.g. overtime must be declared, does this money go to my creditors or increase my trusteeÔÇÖs pot? IÔÇÖm very grateful to the team on this site for giving honest and helpful advice, without these guys I would be up the wall as my trustee doesnÔÇÖt give any advice and when I do contact them, I get the impression IÔÇÖm bothering then. So once again thanks to the team for all your help. I will let you know how today goes.

Hi toomuchdebt,

Creditors have to agree to the fee level proposed which puts a natural control on how much can be charged.

It has to be remembered that the senior employees handling Trust Deeds are extremely highly trained and qualified individuals; as such the billing rates involved are comparable to those you would expect from a lawyer or an accountant.

Additional payments that you make to your Trust Deed from overtime will result in an increased dividend for your creditors.

Of course none of this changes the fact that anyone entering into a Trust Deed should be able to expect a reasonable level of responsiveness and respectfulness from the individuals and firm handling their case.

The clear message from visitors to this forum seems to be that anyone seeking a protected trust deed should choose very carefully which people/companies handle the process for them.

Fingers still crossed for you!

Hi trust deed assistant, can you tell me my options if my creditors object.