the money is coming from a culmination of family members, both parents and uncle are cllaborating to help out on this

Hi laguna 1

It is certainly possible for lump sum trust deeds, however it would be entirely dependent on your circumstances. ie if you could afford a sizeable contribution or had other assets, then this may be difficult. On the other hand if your income is limited and there are no assets then it is certainly possible.

Mark

Welcome back laguna_1.

A trust deed (or another type of debt solution) is a frightening prospect for some people so no-one is going to judge you for taking time to be certain about what you choose to do.

I think that the short answer may be that a lump sum based trust deed is viable, but not necessarily if you are currently in a financial position to be able to make monthly payments as well (after your reasonable living expenses are taken into account). As you mention this might not be affordable it might not be an issue.

One for our trust deed experts to add their thoughts I think...

Oops... Mark beat me to it while we were writing at the same time!

I done a lump sum Trust Deed last April,I had ?ú46,400 debt and no surplus income.I had ?ú11,000 equity in my house so a family member had to buy me out.I was so worried about signing a Trust Deed,but for me it was the best thing ever.I never went with the first IP I shopped around,and I looked at other options.In my very dark days it was this web site that got me through it.Now if I don't have money for it I do without.

Hi jay99

Thanks for the comments, it is much appreciated by me and I'm sure the rest of the people on the site. Glad it all worked out.

I think the hardest thing for people is picking up the phone and asking for help. I'm sure people have a weird idea what we are like, but our job is only to look at circumstances and discuss all the options available and hopefully provide some guidance and hopefully a solution.

As I keep moaning about, if its done properly at the start, it should be plain sailing after that.

Regards

Mark

Many thanks for all your replies lol...you guys and girls are working very hard helping out us headless chickens, your assistance helps out so much more than u realise.

I recently went to see someone about a Debt Arrangement Scheme and unfortunately i only really have around ?ú100 surplus income a month, which was too little to do a das with. Further a dmp at that level will take years. Due to various increases in prices and rent etc, my surplus income has gone down fromwhere it used to be.

If i went into a trust deed, this surplus income of ?ú100 would pay back the loans, albeit very slowly, which would go to fund the lump sum trust deed...however this would be over 80-90 months.

How do i go about this and is it the same thing that if its not accepted id have to go bankrupt,as i really dont want to go down that route.

Any ideas on what type of dividends these guys would get back if i raised 9k on a 35k balance.guess it wud depend on the level of fees attached to a lump sum trust deed.

thanks in advance for all ur help folks

I can confirm i have zero assets

Hi Laguna 1

If your income and expenditure is as tight as you suggest, then the lump sum TD should work with little or no chance of failure. Fees would be restricted as the time period would be greatly shortened.

Mark

Hi Laguna 1

As Mark says, there should be no problems in setting up a lump sum trust deed - as long as your creditors agree to the shortened timescale.

Am I really that scary?? Maybe you caught me on a full moon...

Thats good to hear folks.

No No your not scary at all lol, your service was spot on and my decision not to go ahead at that time was nothing to do with you. At that point i kept thinking about getting registered with the insolvency register and that how it might affect future employment

i though full & finals funded by the lump sum pro rata'd between all my creditors would have been etter than a trust deed. I thought they would have jumped at it considering they wud be getting 25%ish of the balance owed..

However looks like this isnt the case and altho i can save 100 a month its just never gonna work out thru a dmp

hence im back round in a circle towards a trust deed, the strss of debt really does get u down and having 11 creditors to deal with instead of 4-5 is also going to be an issue

any rough guesstimates on fees on a lump sum trust deed, i know a 3yr one was roughly 4kish right. just thikning what my 8-9k would give them dividend and if this wud be enuf for them to accept

id rather wait and either try to borrow more or save my 100 a month to ensure they get enough cash not to object...as bankruptcy is deffo not an option for me therefore as full proof an offer i can make, the better for me.

i know 10% dividend is mentioned or egg it was a multiple of the fees i think, my memory is a little hazy

Hi laguna1,
If you get a very good IP they will have a very good Idea if your Trust Deed will go through or not.When I read the implications of signing a Trust Deed I had to run and be sick,the signing was the worse part it made me ill as I was not wanting sequestrated.My lump sum was ?ú11,082 and only ?ú7,148 went to my creditors the rest went to the IP but they don't get all that money their are outlays that have to be paid from that you get paper work for every penny they spend.When the advert is placed in the Edinburgh Gazette it will be five weeks of hell,I had eight creditors and not one objection.I do know what you are going through, but for me it was the right thing my life is great now.Still don,t have much money but I don't have debt.

Hi all

As above, any decent IP should be able to put together a proposal which will be 99.9% accepted ( beginning to sound like a Domestos advert!)

We are given guide lines by creditors and as long as we work within those, then the Trust Deeds won't fail. I honestly can't remember the last one we had which failed.

If we do the job right and work with the creditors, there should be no issues.

Mark

Hi folks

Very much appreciate the advice on this, as Sequestriation would definitely cause me issues working in finance long term, however trust deeds aernt deemed as bad

If worst case, the trust deed for whatever reason doesnt get protected, as i see it there are 2 options:-

1) getting sequestriated
2) running the deed unprotected

If my trust deed was to fail, would i be able to say that I would want to carry on unprotected rather thn get forced into banlruptcy..

I dont fully undestand how the whole unprotected thing works however
especially in regards to a lump sum trust deed.

I am guessing that those who have accepted would get paid and i would be discharged from them

The others who objected still get their share of the money but id still be liableto pay them the rest.

Im guesn worst case even if it doesnt get protected, it wud only be a few that wouldnt accept and i could deal with them later after the trust deed is done and dusted.

in terms of fees, i know when i was lookn at trust deed before, the fees for a 3yr agreement were in the region of 4.5k

jay's was 4k roughly, i thought it may have been lower, i guess it depends n the individual ip, i dot have nay issues with the fee i am purely looking at it fromt he point of view, i have a limited lump sum and the less the fee is, the more the creditors get back, the less likely for them to accept the deed, and the more likely for me to get my life back and finally say goodbye to these debts and all the stress associated with them

thanks for all ur replies again...

Your interpretation of your options is spot on, laguna1, though it is technically possible that you could be forced into bankruptcy as your creditors would have the right to apply to the court for your sequestration if your trust deed fails to become protected. Not sure why they would bother, though.

Regarding the fees, most of the costs associated with a trust deed are for time spent and outlays at the beginning and end of the process, which are incurred regardless of the length. The time period in between is a fairly low proportion, which is probably why jay99's costs were higher than you thought they might be.