Welcome to the trust deed forum KMac. It's great to hear that you have found the forum here useful.

Lump sum trust deeds might be a good option in such a scenario.

Could you let us know the amount of debt and the possible lump sum that might be available?

Hi,
Our total debt is about £65,000, its all joint and my redundancy would be in the region of £7000. Thanks.

Hi,
Our total debt is about £65,000, its all joint and my redundancy would be in the region of £7000. Thanks.

Hi KMac.

The guidance that is generally used for contribution based trust deeds is that the creditors must be expected to receive at least 10% of what is due to them before the trust deed company takes on the case.

Assuming that the same percentage applies to a lump sum trust deed (which I would assume it would) there appears to be little left over after the 10% to fund the fees of the Trustee and their outlays.

You would however expect the fees in a lump sum trust deed to be lower than those of a case that would require three years management.

Is there any possible source of additional funds at all?

Please don't be too put off by my answer as I'm keen to hear the opinions of Mark, Kevin or Julie on this when they next get chance to visit the forum.

Thanks for your reply, I think our family could possibly help us out with the trustees fees so that there would be enough for the creditors to accept. Assuming that this would be possible how long would the whole process take? Thanks

Hi Kmac

I don't see any reason why it would not work as you describe and as it was a one off payment, the Trust Deed could be closed fairly quickly to reduce fees.

As long as the proposal meets the creditors criteria, then I cant see any issues.

Mark

Mark

Thanks for that Mark,

Also what could I expect the trustee fees to be roughly so i can get an idea of how viable this would be, and as the debts are joint would we have to have a minimum of 10p in the pound each or collectively? Am I right in thinking there would be two seperate trust deeds with two lots of fees?
Thanks.

Hi Kmac

Yes, you would need to look at 2 Trust Deeds as you can't do a joint one unfortunately. Each would have its own costs and outlays attached.

Could you provide me with a list via the contact button on creditors names and approximate amounts and also which are joint and which are in your name/partner's name. Certain creditors require certain things and it would help to have the info and see if there are any areas we need to be careful with.

Mark