Hi Linda

Can you advise me why they put you in a debt management plan 3 years ago and did not suggest a trust deed or DAS. Also, can you clarify why they are asking for £500 per person. Is there more than one trust deed? You should bear in mind that a large number of firms do not charge £500 if there is no equity.

On the face of it, these 2 matters alone would cause me concern with the company you are dealing with.

Any reputable firm would be able to sit down with you and run through all the options and points and clarify everything clearly. They would also be able to confirm if the trust deed was the best option and confirm if this met all the criteria to be accepted.

There's no need to worry about your wages as the trust deed would resolve all of this, however if you have an overdraft, my advice would be to open a new account. A basic account would do. This would give you a fresh start and take care of any overdraft.

Mark

Hi Linda and welcome.

I would echo what Mark has said regarding why you have been in a Debt Management Plan for 3 years and not a DAS.

Have you have all of your options discussed with you i.e. Debt Arrangement Scheme, Trust Deed or Sequestration? You ideally want to sit down with an advisor face to face and discuss all of your options, the pros and cons and then decide what option you prefer.

If you have debt with the bank you bank with then you would need to change bank accounts so their suggestion to do this is correct however you do not need to use their bank account.

A Trust Deed can be over a period of 3, 4 or 5 years. The timescale depends on your particular circumstances i.e. assets, income and expenditure etc. A good advisor will be able to take you through this in detail.

Again as Mark has said, the £500 nominal sum payment to protect your property isn't something that a lot of firms charge. The firms represented on the forum don't.

I wouldn't worry about them rejecting a Trust Deed. As long as the proposal meets the criteria then there should be no problems.

The one thing that a Debt Arrangement Scheme, Trust Deed or Sequestration will do is give you protection from your creditors and a light at the end of a tunnel to focus on.

Hi Linda

Any decent insolvency practitioner will know whether what you can afford to propose is likely to be acceptable to your creditors or not. It is always a good idea to get advice from more than one place - especially if you are being told that you have to pay for 4 or 5 years. The standard trust deed term is 3 years and, whilst there might be good reasons for making it longer, sometimes the extension may not be necessary if your chosen firm is more expensive than others.

I was with a debt management company from England who were total joke and got us into more debt and problems with creditors, which resulted in my wife going to court to be embarrassed in front of joe public , considering the company said you would be there yourself[:(!] Also was served with court writs while out cutting the grass in the front garden , how embarrassing and had also had a court ruling from selling our house, so got advice from this forum and we went down the road of being Bankrupt, wished i had done this alot earlier, 3 years and then pay £7500 equity to pay, so i advise ditch the debt management plan as you will be paying it for years!!!!!!!!!!!! Hope this helps.19 months into our bankruptcy and even got a credit card, only use it for emergencies[:)]

Hi graham

As your post clearly states, there is no reason to enter into a Debt Management Plan when other options are availabel. Unfortunately the people out there offering advice, tend tio guide you into what best suits them, as opposed to what best suits you.

Mark

Yes Mark they promise you the earth but are a total joke and get you into more bother, if i had stayed with them it would have taken me about 9yrs on there debt plan , glad i moved from them , pity i went down that road in the first place[:(!]