Hi joannet and welcome to the forum.

A set-up fee certainly isn't "normal". For example none of the firms that post on this site (represented here in the forum by Mark, David and Michael) charge one.

There are new rules, but nothing there says that a set-up fee has to be charged.

With these factors in mind, taking advice elsewhere would seem to be in the best interests of your husband.

Continuity of banking facilities is obviously important for many people. If your husband owes his current bank money he'll need to open a new bank account with a bank that he owes no money to.

The sooner that's done the better so that it doesn't become a source of delay. You might find some of the information on this page useful in that respect:

https://www.trust-deed.co.uk/bank-accounts.html

Hi joannet

You should not pay up front fees under any circumstances. The normal process appears to be a middleman who takes your details, charges you a fee and then refers you to an IP firm, when you can cut out the middleman bit and approach a firms directly.

I always think the best idea is to speak with someone and discuss all options to see what best suits. Ensure all matters are fully clarified and put in writing and then, in your own time, you can decide what best suits.

The bank account is an important part as there is a danger the bank will close an account if there is a related debt with them. Opening a new account shouldn't be too much of a problem though.

Mark

Hi joannet,

As TDA and Mark have advised there is no set up fee required to enter into a Trust Deed. I'm disappointed that another company has chosen to say its because of the recent change in rules. It's something to be mindful of as service and level of fees can vary from firm it firm.

When considering what options your husband has available he's best to sit down with a qualified advisor in person and work through his full financial situation. By doing this your husband will then be able to pick which option he feel best suits his circumstances.

The most important thing is to receive everything in writing regarding how any assets he might have will be treated, how much the monthly payment is and for how long.

You both need to be confident in the firm and advisor that you choose and by speaking with a couple of advisors you can then decide which one you feel more comfortable with.

Providing a Trust Deed is set up properly and for the right reasons it's a useful way of managing your debts. The positive thing to remember is that there are solutions to help your husband deal with the debts.

Thank you all three of you for taking the time to reply.

I will pass your comments onto my other half tonight.

His main debt is to Clydesdale bank (about £25000) and he also has a large barclaycard bill (I think about. £5000)

The two companies he spoke too said that if he could pay 140 per month for 4 yers that would be enough for the banks to accept it. It seems a bit to good to be true to me, does this sound right?

TDA thank you for the bank count info. I am pretty sure he has an overdraft with the bank so sounds like opening a new account with different bbnk will be. Good idea.

Sorry about my spelling by the way!!!!!!

Hi Joannet

Don't worry too much about the spolling!

The vast majority of creditors in Scotland are dealt with by one company ( The Insolvency Exchange) who give IP's certain criteria to work towards before accepting, so as long as we follow their criteria, there should be no issues. From the figures provided, the proposal would not meet the criteria unfortunately as they allow for a certain fee, but also a certain dividend.

The contribution is based on household income minus household expenditure. This would need to be reviewed to arrive at a figure as, depending on assets, income etc, other options may be more viable

Mark

If its unsecure debt dont do it ..read debt watchdog for honest advice

That's a bit unfair fed up.

Yes some of us are having problems with some trustees but the majority,especially the ones who post and give advice on this forum, do their best to be fair to both sides.

Joannet, your other half and you need to be happy that you have all the information you need from whoever you decide to approach for help with your debts. Talk with them, ask all the questions you want to and don't accept any answer which starts with " don't worry we can sort that after you sign the paperwork"

You will need to open a basic bank account with a different bank from any that you owe anything to.

Hope this helps

Tonyd

Why is it unfair to give an honest opinion ? Sometimes these sites can be brainwashing folk into thinking trust deeds are the answer and i feel thats not always the case and its always useful to know there are other sites out there to refer to.

I have not seen signs of brainwashing on this site, in fact I often see the experts telling people that a trust deed is not the way forward for them and then point them in a better direction.

As I said, some of us are having problems with our trustee, me included but let's not paint them all with the same brush.

Let's get back to the point of this thread which is to help joannet.

Tonyd

I can safely say our trust deeds (me and mrs plasticdaft), were the best solution we could find to a ridiculous amount of debt we had no chance of even chipping away at.

What I would say is not to go near any company that wants to charge you a set up fee. Shop around, advice costs nothing.

I used rsm tenon for my trust deed but they are defunct now.

Any of the companies who post on here have my upmost trust.

Good luck with sorting things out.

Paul

I think you will find trustees are actually charging for setting up trust deed but just dont ask for it upfront make sure you are clear on how much they take for their cut also did you know joannet that they dont actually pay a penny to your debt till end of 4yrs ( Or whatever term is ) which means they are gathering interest on your monthly payments so ask if that interest goes towards paying your creditors be interesting to heat what they say

Hi fedup

Trustee's are unable to charge 'up front fees' as you state for setting up a Trust Deed.

We pay dividends monthly in both our Cardiff Office and our Glasgow Office. Also, the new regulations state that dividend must be paid on month 24 and 6 monthly thereafter. As for the interest, all funds are held in an interest bearing trust account, held in the individuals name. Any interest added which is shown in the account, is for the benefit of creditors.

Mark

Fed up.
Do you honestly expect this service to be provided for free? Of course the trustee has to be paid and its true that some seem to charge much more than others. You only have to look at my thread " overpayment " to see that. But we can't paint them all with the same brush.
Interest made on the money paid into the fund by the client is added to the fund for payment to the creditors and trustee fee.

Tonyd