Hi Maisie

Generally the Trust Deed will be 36 months and the amount of contribution payment should be roughly the same. There may be a slight variation from firm to firm.

Mark

Hello Maisie.

A trust deed generally lasts for three years whichever company you choose. Sometimes it's agreed in advance that they will run for longer though this typically only applies where a longer term is required to ensure that the creditors receive a reasonable return after the trust deed company has taken their fees.

You should take an interest in the fees that are proposed by any trust deed company, and especially if they suggest that a trust deed should last longer than three years. Fees vary from company to company.

Your contribution each month will be assessed in a very similar way using the same guidelines and a similar methodology by any trust deed company. We'd suggest that you do not sign a trust deed unless you are certain that you can manage OK on the budget that is set. If you're worried about the proposed budget seeking advice from another company may be useful.

I'd therefore suggest that the reasons for shopping around are unlikely to be the monthly payment or the term of the trust deed. Most importantly for the purposes of "shopping around" will be your assessment of which trust deed company will provide you with the best levels of service.

Three years is a significant period, and during that period you will be handing over some control over your finances to whichever company you select. Reading around this forum you'll find plenty of examples of people who are delighted or appalled by the way that they have been treated by the trust deed companies that they selected. Your perception of service that you will receive is therefore very important.

There are other debt solutions available. Payments and payment terms will be assessed in a similar way in bankruptcy. The debt arrangement scheme or a debt management plan are likely to be assessed in a similar way for the monthly payment though the term is likely to be much longer for most people with significant debts.

Thanks Mark

I live in Edinburgh but have spoken to a Firm in Glasgow over the phone, so it would do me no harm to phone some firms in Edinburgh tomorrow then.

I was given a repayment figure for 4 years and a higher repayment figure for over 3 years and wasn't sure which one to choose or accept the first piece of advice I've been given.

Hi Maisie,

I'm sure the best possible outcome would be a three year trust deed with a monthly payment you consider to be affordable?

Please don't commit to a monthly payment that worries you just to get a shorter term.

I'd suggest that you speak with a couple of trust deed companies that cover the Edinburgh area (which I'm sure applies to almost all such companies) and really dig into the issue of fees. I'm sure it's this factor that is connected to the proposed four year trust deed term.

You might find this older thread interesting as it touches on a similar issue:

http://www.trust-deed.co.uk/forum/topic.asp?TOPIC_ID=678

As with any major decision, it is never a bad idea to shop around and get a second opinion, Maisie. As trust deed assistant says, there are often other options suitable too, and any insolvency practitioner you speak to should outline these options too - if they don't then I would wonder whether they are the right firm to go with!