Trust Deed is an option as are the Debt Arrangement Scheme or the Certificate of Sequestration. The position with regards to the options will be dependant upon the level of disposable income your mum has after taking into account household expenditure.

The car, if subject to a loan or owned, will have to be taken into account if its value is over £3K and any Trustee should be discussing this matter both in the Trust Deed and Sequestration routes. There is no requirement if the Debt Arrangement Scheme route is used to resolve the issues.

The house, which you describe as being owned by your Dad is unaffected by what your mum decides.

I would expect all of the companies used on this site and others to provide a free consultation to discuss the matter further and it will be from there you may decide which company to approach.

The website provides information on all the options outlined above.

Welcome to the trust deed forum tryingtohelp.

The answer is that a trust deed may be appropriate for your Mum, but it's impossible to say with any certainty without fully working through the circumstances on a one-to-one basis.

However, on the forum we can certainly help to narrow down the options and explain the pros and cons of each of them as they might apply to your Mum.

Could you just confirm that the house is owned by your Dad alone rather than being jointly owned?

Do you know how much your Mum is currently managing to pay towards the debts each month?

sorry trying to help.

Further information on the car. If subject to a Hire Purchase Agreement then the value of the car is more than likely not to be an issue unless the equity (value less outstanding balance) is greater than the £3K.

Chris

Mortgage is Dad's fully.
Car is not on Hire Purchase.

Current monthly spendings/direct debits are:

£180 loan
£175 council tax
£150 elec + gas
£200 towards credit cards (but this isn't reducing them)
£50 other

Hi tryingtohelp

I think the fact that the property is in your Dad's name is a major plus and would make the final decision easier.

It is difficult to assess level of contribution without an income and expenditure and can only advise that she ( or even you) sit with someone and look at the options, figures and pros and cons of each.

Hope this helps

Mark

can anyone describe any rough figures?

What would the overall cost be over 3 years(is this right?) to do this? Does each solicitor/accountant charge different rates, so it is best to shop around?

thanks trying to help.

Can you confirm the following in relation to the car:

a. who is the registered keeper? (this is the VRD details and not necessarily the owner)
b. whose name is the insurance in - that person should/would have described themselves as the owner of the vehicle.
c. who purchased the vehicle

this will enable an assessment to be made of the owner, and thus allow you to know where your mum/dad stand in relation to the vehicle.

Are Council Tax and Utilities up to date or are they also debts.

From the figures above is a figure of £430 is a figure which you would describe as being paid by your mum to the credit she has (loan/cc/other). Are any of the debts joint with your dad?

Is the figure of £430 affordable or are they struggling, other than not reducing the amounts owed, with that figure.

Think that will enable a further discussion on the site as to the merits of each option.

Regards
Chris

Hi Chris,
My mum owns the car and insurance is hers to. Utilities/c tax are up to date. No joint debts. They just seem to scrape by each month, don't have anything left over. But their own fault since they have lived beyond their means.

All Insolvency Practitioners do charge different fees, although i am sure all of the "Experts" on this site have no upfront charges. Fees for Trust Deeds and Sequestrations are approved by the Creditors and are borne from the agreed contributions paid by the client. For instance if your mum was assessed under a calculation of income and expenditure as having £350 and there was no assets to consider then the estate would realise £350 x 36 (either by contribution to TD or IPA to a Sequestration) - Total £12,600. The Trustees fees based upon time spent on the case plus outlays (Gazette Advert, AIB Auditing/Monitoring and other associated costs) adds up to £4,600. Total remaining would be £8,000 (+ the interest ingathered - not much in todays climate). If the debts were £24,000 - Creditors receive a dividend of 33p in the £.

Hi again trying to help

Mark is right in so much as assessing the level of contribution. It is best for you (sorry your mum, with your support if you feel it appropriate) to sit down with someone to discuss the matter and all the options available.

Chris

hi Mark, thanks a lot, I will tell her that she needs to do this and hopefully get it sorted.

Hi tryingtohelp

Its the best way. Nothing to worry about, honest. Meetings are solely to allow you or your Mum to look at all the options, ask loads of questions and see what best suits.

Mark

Hi Mark,
thank you.
do you think that it sounds like a suitable plan? (a trust deed) with the figures I gave.

On the face of it a trust deed may well be a good option, though as the others have said, best to sit down and go through the details of your mum's situation first so that she can be advised about all of her options and choose whichever suits her best.
It is a bit scary at first to seek help, but I'm sure it will be a comfort to her that you are there to hold her hand, so to speak.