Hi Hoopsah,

It really depends how quickly you want things to move forward and how comfortable you are with everything.

A Trust Deed can be signed within a matter of days from initial contact, sometimes even within 24-48 hours (although I would always say that there shouldn't be any rush to do things that quickly). The proposal is then made to creditors who have a 5 week period to consider the proposal and if they are prepared to accept/reject it. Generally within 4 to 6 weeks of signing the Trust Deed you will commence with your first payment.

I think overall, I would say between 7-8 weeks from initial meeting, first payment and creditors accepting the proposal.

David has pretty much summed it up. I would just add that if there is a good reason that your first payment had to be delayed a little then this is possible.

Remember though that you should stop making any further payments to your debts once the Trust Deed has been signed, so usually that would mean that you should be able to manage to make the the first payment without a problem. Is there a particular expense coming up that you are worried about meeting, Hoopsah?

The documents for Trust Deeds are pretty standard to be honest with little variation. So the actual time would be pretty much determined by yourself.

After you sign, protection usually takes about 6 weeks, however don't get too hung up on the 6 week period. As mentioned previously, as long as the Trustee sticks to the criteria laid down by creditors, then he will gain their acceptance.

Mark

Excellent!

Thanks for all your replies.

Yes, my car is due an MOT at the end of this month and I want to get it through before I exhaust my credit.

Cool - Will be in touch very soon,

Thanks for your help Guys

No problem , Hoopsah.

Are you planning on using a credit card for the MOT if necessary? If you are intending on entering a Trust Deed soon after then you really shouldn't be doing that to be honest.

Hi Hoopsah,

Ah is it MOT time. For me, it's a little bit of a nervous wait when I put the car in for the MOT to hear how much it's going to cost me and for the dreaded phone call from the garage.

Once you speak with a qualified advisor and if a Trust Deed is suitable then at that point you can stop making payments towards your debts. What this should do is in a way give you a free month from not paying your debts and you can use this money to cover the MOT bill.

I met with a client last night to discuss her options and she was due to pay all of her credit commitments on the 17th of June. We organised for her to change bank accounts and her salary will now be paid into a new account. She doesn't need to pay her debts and her first payment to the Trust Deed will be the 17th of July. It effectively meant that she had around £500 spare this month which would have been paid towards her debts which she can use as emergency savings should anything come up during the Trust Deed.

A good advisor will be able to talk you through the best way to approach things like this.

Thanks again for your help.

Didn't mean for it to sound the way it.
At the end of this month I will get my annual bonus in my wage - Tends to only be about 3 or 4 hundred after tax and I use this to pay the MOT and Tax.

Just didn't want to start just now and then the bonus would be counted instead of letting me use it where I wanted it.

Hope you understand

Hi Hoopsah

Don't worry, we know what you meant. There's no issue with the bonus as it's not a monthly bonus used to calculate ongoing contributions and using this for MOT or other ongoing costs is certainly acceptable.

Mark