Hi Porcupine

Yes, its £5k under the new regulations.

Mark

Thanks Mark....... Just curious why so many companies would not entertain her in applying for a PTD........

Just noticed the company she went with is actually based in Dublin and not updated their website to take in the changes in the regulations............

Hi Porcupine

It would depend on the numbers involved I suspect and the level of contribution.

I think a lot of firms have a limit of around £8k-£10k as if the debt was in the region of £5k, then DAS may be the better option.

Mark

Hi Porcupine,

As well as the level of debt it can also be down to the fees in which companies charge to administer the Trust Deed.

Some companies can charge high fees which means that the payment a person might need to pay to cover these fees and also return a dividend it creditors would mean that the client could repay their debts in full in a DAS in the same timescale or less.

Other companies can be more flexible with their fees which can mean that they are able to offer a Trust Deed to the client if that's what they want.

Fees can be a big factor in a case whether it's a Trust Deed, Sequestration or a DAS. I'm dealing with clients at the moment who were offered a DAS with a company over a 45 month period. That company were charging the clients around £8,000!! Their case is pretty straight forward as well. I've also told the clients that a DAS can be set up free of charge by their local CAB which the first company didn't.

By speaking with a couple of advisors and firms you can get a feel for different fees because ultimately it's the client that pays this. That's why it's always a good idea to speak with a couple of advisors.