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just starting TD

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(@sodit)
Active Member
Joined: 12 years ago
Posts: 6
Topic starter  

feel kind of worried that the first two months payments are taken for set up fees and it going to be the third month before any creditors are given anything. I have only sent off all my paperwork so not even sure I will get a trust deed have been told it should not be a problem. just a worrying time

lh


   
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Mark McFadyen
(@mark-mcfadyen)
Famed Member
Joined: 16 years ago
Posts: 4798
 

Hi sodit

There's no requirement whatsoever to pay 'set up' fees to a third party company.

You can approach an IP form directly who will review matters immediately, advise you of the options and if required could commence the trust deed as early as you wish.

Mark

Mark is not posting regularly in the Trust-deed.co.uk forum.


   
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Rob Hardie
(@rob-hardie)
Estimable Member
Joined: 12 years ago
Posts: 196
 

Sodit,

Try not to worry I am sure you will be in good hands. The creditors will all be written to soon I would imagine.

If you receive letters or calls you are not obliged to deal with them, instead pass them to your Trustee to deal with.

If you are not comfortable with the initial fee just be honest. They will be looking for your business and may be flexible?

Rob is not currently posting in the Trust-Deed.co.uk forum.


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 16 years ago
Posts: 13594
 

Hi sodit and welcome.

I'm not sure that I agree with Rob that you're likely to be in good hands given what you have written.

Are you sure this payment is for a trust deed? It sounds like it might be a debt management plan given the fee structure that you mention. If that's the case I strongly suggest that you take further advice from a different source before making a commitment and/or paying anything.

If it's a "set-up charge" for a trust deed (meaning that the two payments will not count towards the payments for the trust deed) it's a total, absolute and complete waste of your money and time. Loads of firms, including those that post here, will help you set up a trust deed without this type of upfront fee.

I am concerned that you're looking at a debt management plan rather than a trust deed though...

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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Mark McFadyen
(@mark-mcfadyen)
Famed Member
Joined: 16 years ago
Posts: 4798
 

Hi TDA

That was my point. I've dealt with a number of cases where the person has been told its actually a trust deed when it is in fact a DMP and its only came to light through seeking further advice after creditor action.

Mark

Mark is not posting regularly in the Trust-deed.co.uk forum.


   
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David Tannock
(@david-tannock)
Famed Member
Joined: 12 years ago
Posts: 2581
 

Hi sodit and welcome to the forum,

Have you sat down with an advisor face to face and discussed your circumstances to establish what options you might have available? I would always advise a face to face meeting.

There is no requirement to pay any kind of set up fee for a Trust Deed. The way all of the firms represented on the forum work is your first payment is your actual first payment to your Trust Deed.

In terms of not being sure of you will get a Trust Deed, a good knowledgeable advisor will be able to tell you if they believe a Trust Deed will be accepted by your creditors or not.

Can you give us an idea of your circumstances i.e. how much debt you owe, what you can afford to pay per month and also if you have any assets.

David is not currently posting in the Trust-Deed.co.uk forum


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 16 years ago
Posts: 4253
 

I wouldn't be surprised if the two month's payments are indeed a set-up fee for a trust deed - others have posted on here previously to tell us the same. I think I could hazard an educated guess as to the firm in question.

As others have said - there is no need to pay a set-up fee to enter a protected trust deed. Have you definitely signed a trust deed already, sodit?

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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(@sodit)
Active Member
Joined: 12 years ago
Posts: 6
Topic starter  

hi thanks all. well i have only just sent off all my paperwork and statements such as payslips bank statements etc. I have only signed a Authority to act form, i have not had any official written documents.

lh


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 16 years ago
Posts: 13594
 

That's probably good news sodit given your original post.

Take your time and make sure that whatever choices you make in the future are well-informed and represent good value for you.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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(@sodit)
Active Member
Joined: 12 years ago
Posts: 6
Topic starter  

hi so does this mean I am not tied into anything as yet.will I be able to go elsewere as I have a few reservations.
Really do appreciate all this advice. I have debts of around £10400 and I am struggling with paydays along with credit cards and a bank loan. just a vicious circle really.

lh


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 16 years ago
Posts: 13594
 

How much do you think that you could afford to pay towards your debts each month sodit? Be careful to leave yourself enough money to cover your bills and expenses when you work this out.

You'd only be tied into a trust deed if you'd actually signed the trust deed document. It doesn't sound as though you have. You cannot be tied into a debt management plan.

Have you made any payments or provided the company with the means to take a payment from you?

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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(@sodit)
Active Member
Joined: 12 years ago
Posts: 6
Topic starter  

HI tda no I have been advised to change bank account and to e.mail the payday people that I am entering a td. the only thing I signed was the Auth to act form. I was told on phone that I would pay around £171 a month and this should take 3yrs after the first two months payments to pay for admin etc. but this was all in a phone call I have not received any written cost yet

lh


   
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Mark McFadyen
(@mark-mcfadyen)
Famed Member
Joined: 16 years ago
Posts: 4798
 

Hi sodit

It's certainly workable on the figures provided. Excluding the up front payments if course!!

Mark

Mark is not posting regularly in the Trust-deed.co.uk forum.


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 16 years ago
Posts: 13594
 

It still doesn't sound right sodit. Having said that you should still be fine if you haven't signed anything else or paid anything.

If £171 is the affordable amount a three year trust deed (not a 38 month trust deed!) seems perfectly viable.

You might also consider bankruptcy. The payment is likely to be similar and would also last for three years (assuming that this remained the affordable amount). You'd be discharged after a year though (2 years quicker than a trust deed).

The debt arrangement scheme (DAS) is also worth thinking about. A fee-free DAS at £171 per month would take just over five years to full repay the debts and you'd avoid a personal insolvency.

Do you own any assets? Your home or car for example?

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 16 years ago
Posts: 4253
 

A Trust Deed is likely to be a viable option for you based on those figures, sodit, though you could save yourself a couple of months of payments by going with a different firm that does not charge a set-up fee. This shouldn't be difficult to do as you will find that the vast majority of firms do not charge a set-up fee - including the 4 represented by the experts on this site.

A DAS payment programme would also be likely to work, though would be likely to take a couple of years longer

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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