Is there any reason you want to avoid bankruptcy? Its seriously not as bad as people think.

When you worked out what was affordable were you honest with yourself about what things cost you each month?

Paul

Hi Jannie,

In a Trust Deed there are costs and fees which your monthly payment has to cover and also give an acceptable return to creditors at the conclusion of the period. If you are unable to afford a suitable payment that creditors would accept then unfortunately a Trust Deed would not be suitable.

Your payment to a Trust Deed should be calculated on affordability first of all and then from that it can be assessed to see if the money you have available to pay to a Trust Deed is enough that it will cover the costs and give creditors an acceptable return. It also depends on which creditors you have as different creditors have different acceptance criteria.

In a Sequestration (Bankruptcy) as creditors do not have to accept the proposal then there is no focus on having to meet their criteria and ensure that they receive a payment at the end. This can mean that the payment per month can be more affordable.

Creditors unfortunately don't look at a case and think that a Trust Deed is best as in a Bankruptcy they probably won't get any return. Previously Northern Rock now NRAM Plc were very problematic when we submitted Trust Deed proposals. At one point they wanted between 40 & 60p in the £. Despite numerous letters outlining that if they did not accept a Trust Deed proposal and allow it to become protected they would receive a smaller return in a Bankruptcy they did not change their mind. Now though, they are fine with Trust Deed proposals...

As plasticdaft has said, Bankruptcy isn't as bad as the stigma and what people think. A good advisor will be able to discuss all your options with you and put your mind at ease.

It's all based on what you can reasonably afford after your acceptible outgoings etc.

Have you spoken to an expert yet?

Have a chat with a could of the experts on this site as your first port of call. Its free to do and they are all very approchable. This will take the guess work out of it for you and will allow you to work out if a DAS, Trust Deed or Bankrupsy is the best option for you and what each one will mean!

To help them out work out all your credit payments, you income(s), your outgoings for food, travel, clothing, insurances etc in advance as this will help move things along.

For your monthly figures work out your yearly spend then divide it by 12... ie... Petrol costs me £85 a week on average. so that's £85 a week * 52 weeks a year / 12 months = £369 (rounding up the pence)