Thanks for that information.

I'll provide you with some thoughts based on the assumption that a figure of £400 is the disposable income that would also be assessed by a debt adviser or trust deed firm. They use guidelines (that are also used by creditors) to set minimum and maximum figures for things like food, clothing and so on. The idea is to strike a balance between making sure you're OK for the term of any debt arrangement and that the creditors perceive they are being paid what you can reasonably afford. You'll need to speak with a suitably qualified person to confirm whether £400 jointly between you seems reasonable. I'm also basing my thoughts on the house not having any equity in it.

Your debts (personally) appear to be around £42400. Your share of the disposable income appears to be around £200 per month. This probably makes a trust deed over three years (the usual term) too tight as the creditors would expect a very low return after the fees and costs of the Trustee are taken into account.

You may be able to enter a trust deed that lasts a little longer than three years in order that your creditors will receive a reasonable dividend. As an alternative, you might look to sequestration/bankruptcy instead. You'd still be expected to pay what you can afford (which we think is around £200 per month) but it would only last for three years.

Your husband has debts of around £24400. His share of the disposable income is around £200. Assuming that's the case, it looks as though he could go ahead with a trust deed or consider bankruptcy/sequestration; each of which appear likely to last for three years.

You could also look towards doing a joint Debt Arrangement Scheme. With total debts of £42400 and a monthly payment of £400 it does look as though the arrangement would be expected to last around nine years or so.

All these options would provide you with legal protection from your creditors provided you met your responsibilities under whichever route you chose.

As an aside, it isn't unusual for a couple to embark on different debt solutions at the same time. It's actually quite common and still allows for the overall situation to be dealt with in a co-ordinated way.

Hi TDA

Nicely calculated. My steam powered calculator obviously isnt as fast as yours.

I think a lot depends on the creditors, but a reduction in fees or slight increase in contribution can normally make a big difference to get a proposal through.

Mark

Mark

If we paid 500 towards this would that be more acceptable for creditors. I have roughly worked out living expenses and think we could maybe stretch to this.

Hi stressed09.

It might make a difference if you're especially keen to go down the trust deed path rather than the other options.

The most important thing is to make sure that you'll have enough money to be OK. Three years is a long time and you don't want to leave things so tight that it's a real struggle to get to the end of each month.

That's why decent debt advisers look at the situation first and then make suggestions based upon the facts they have put together.
If the starting point is a particular solution (and trying to make it work), and you adapt your financial records accordingly, it can in some circumstances lead to a situation that is later regretted.

You may wish to speak with a professional to seek out their view on an appropriate level that you can afford to pay towards the debts and that the creditors will likely accept.

Thanks for your help but am getting more confused now. Is the joint loan and overdraft counted fully twice.

I can appreciate that is confusing stressed09.

A trust deed (or sequestration) is an individual thing (there is no such thing as a joint trust deed for example - couples would therefore each sign their own if they both went ahead with one).

That means, for the purposes of a trust deed, each individuals debt level needs to be looked at individually.

A joint loan (or overdraft) makes each of you fully liable for the balance. If one of you were to disappear forever tomorrow, the lender could seek full repayment of the balance from the other.

As you are each individually fully responsible for the debt, the assessment of debt levels used for a trust deed for each of you would include these joints debts fully for each of you.

It would be different if you did a joint Debt Arrangement Scheme (or debt management plan). As the two of you would be entering into a single debt plan, the debt would only be counted once for the overall debt balance (£42400).

I hope this helps rather than making you more confused? It's not the easiest thing to explain.

Hi stressed09

It is a bit confusing.

Generally the creditor can pursue each party for the full amount, but can only receives the total balance, not the amount x 2. ie if the debt was £10k they can pursue you both legally for £10k, but if you paid £7k and husband paid £3k then the debt is paid in full.

In statement of affairs, we need to show each party owing the full amount, but it is only a paper figure. It is one of those horrible anomalies, but it is for accounting purposes more than anything else.

Mark

Taking into account the details I have given can you let me know what you think would be our best option to deal with this. Your advise would be much appreciated

Hi stressedout09

I think there are a couple of options. Its difficult to decide without a full review as certain creditors are dealt with certain ways, income and expenditure needs to be looked at etc.

My advice, as always is to sit down face to face, ask tonnes of questions and make sure all matters are answered directly and then confirmed in writing before you do anything. Belts and Braces.

From the info provided, I am certain that there is a viable solution to deal with matters.

Mark

Hi stressed09.

The advice we can provide is limited by the forum environment. There's only so much information we can collect from you here and can therefore we can only provide an indication of which options might be open to you (and the advantages and disadvantages of each) based upon the information provided.

It does appear however that some or all of trust deeds, the Debt Arrangement Scheme or sequestration will be available to you and help you to restore the balance between your income and your expenditure without the worry of unaffordable debt repayments each month.

I'd suggest that your next step should be to run through your circumstances directly with a suitably qualified adviser. I'd restrict the choice of adviser to either a trust deed firm, a Money Adviser or a debt adviser who holds professional qualifications (there are hundreds of advisers out there that do not and the quality of such advisers varies widely).

Thanks Mark I will be in touch

Hi stressed09

No problem and i promise I don't bite!

Regards

Mark