Hi ashirley, welcome to the forum.

Strictly speaking you should not be taking on any further credit if you are planning on entering an insolvency procedure, however in practice it is not unusual for this to happen.

You have to include all debts in a trust deed so should list it with your other creditors. It is only really likely to cause you a problem if it is a substantial sum as the creditor involved is likely to object to the trust deed proposals and if owed more than a third of your total debts it would block the protection of the trust deed.

Hi ashirley,

It may only cause you a problem if you have angered this particular creditor and they have a sufficient size debt to be able to stop the Trust Deed in it's tracks by objecting to it. They may wish to do so out of spite.

it all depends on the size of the debt, who the creditor is etc. If it is a large organisation it may take them 5 weeks to realise what has happened and then its too late for them to object. Also if they do object does not neccessarily mean their objection has any standing. This depends on your other creditor views and amounts.

At least you have been honest to your Trust Deed, many people do not and it tends to then come back to haunt them down the line.

thankyou,

it is catalogues and I dont think they make up more than a third in total.

reading alot of these messages and was sure it was what i wanted to do, but I see alot of people are having problems getting charged after the period is over. I have already been told I will be in the deed for 46 months, I have zero equity and intent on getting a 3rd party to pay the £500 so they cant re-value to the house at the end and have no interest. do you think that all sounds straight forward, theres no hidden suprises I should get at the end? #worried[V]

Hi ashirley.

There's no need to pay that £500.

Other firms, including those represented here by Mark, Kevin, Rob and Chris, do the same thing but don't charge for it. It might therefore be worth chatting to another firm for this reason.

As you have been quoted a term longer than 3 years (the standard period) you may also wish to take advice from another firm before signing.

The extension to 46 months may be necessary, or it may be a way for your trustee to be able to recover higher than average fees. It might be the case that another firm could handle a trust deed for you over a shorter period (as we have very often seen here over the years).

really,

thanks so much for your advice,

would I incur any charges if I didnt go ahead with my trust deed with Wilson Andrew? as they have already paid for the survey etc and sent all my forms out

regards

Have you signed anything agreeing to pay charges ashirley?

im unsure i signed something originally after i phoned debt advice scotland number and spoke to an agent who sent me some forms which i signed which was basically passing my details to wilson andrews but have not signed the trust deed or anything else as yet

thank you [:I]

ashirley,

Your Trustee has 2 options should you no longer wish to proceed. They can simply resign as Trustee, reverting you to the position you were in prior to ever speaking to them. This would leave you at the mercy of your creditors, but open to speak to another IP firm.

The other option would be that they may petition for your sequestration. However, generally this is only done if there are sufficient assets to make it worthwile.

I would never advise on renaging on a Trust Deed without first speaking to the Trustee to clarify what has been agreed and what is expected of you.

Thanks

ah i see that you have not signed, then you have no obligation to proceed as you have not signed anything. They have incurred outlays but these are not attributable to you if you hace not signed a contract.

Find a firm that wont charge £500 for nothing!!

Cant believe companies are still doing this. Its dick turpin time!

Paul

Whilst you are understandably keen to get something put in place, I would urge you to take your time, ashirley. Unless you have already been taken to court by a creditor then there really is no rush, so feel free to get a second opinion and go ahead with whoever you feel most comfortable with.

Wilson Andrews is a perfectly reputable firm, but at the end of the day it is a 3 (or nearly 4) year process so you may as well satisfy yourself that you are happy with your choice before committing.

thanks to all,

this will be my 1st month of not making minimum payments so as yet theres been no action from creditors,

I will speak to some others is there any you could advise on that doesnt charge the £500 and are reliable

regards

Hi ashirley.

This site recommends the firms represented here by Mark, Kevin, Rob and Chris. You'll have seen Kevin and Rob's responses to your questions here. If you want to have a chat with them to help make a comparison you can get in touch with them via the "contact buttons" in their forum signatures.

None of the four firms represented here charge that £500. To be fair I think there are others out there that have also stopped doing so.

Hi Ashirley,

All the companies represented on this site do not charge the £500.00 fee. They are all independant of the site (as far as I understand the current setup) but post fequently to pass on knowledge, help, guidance and reasurance along with TDA (Trust Deed Advisor).

I intereviewed (as that is what you are really doing when you meet these companies) them all and two aditional ones. The two expernal companies wanted to charge £500 to secure the equity in our house of which there was none along with other things which helps our decison to disgard them as potencial firms to go with.

In the end we went with RSM Tenon (representyed by Kevin on this forum). It was a hard choice as the organsations from here all offered much of the same as each other. RSM in the end suited us due to their office locality to our work office and going on gut feel.

As was outlined above, unless you are at the stage of court action do not panic. There is time to sort it all out. We pushed ourselves to do it very quickly (just under a month from interviews to signing) which was very stressfull. We thought we needed to go quickly as we had to stopp making minimum payments and thought this would cause no end of issues. In reality all it caused was some calls and letters fromt he creditors. Your credit soce is going to be hammered regardless of this process so there is no need to worry about it which took me a while to get my head round.

My biggest advice as someone who has just done this full process (and is still going through it) is to take a breath. Step back from it all, sign nothing until you have interviewed people and move forward from there.

Have you taken care of an aditional bank account not attached to your lenders yet. DO THIS NOW as a priority if you have not. Out of the full process this has been the biggest issue for us so far...!