In theory you could end up paying more than you owe, I understand this to be rare.
The most you would pay is -
The original amount of debt
Interest usually 8%
The trustee fees

Saabrina is correct regarding trust deeds.

In DAS you'll just pay back what you owe (plus fees if you used a fee-paying option).

As saabrina says, it is theoretically possible that you could end up paying back more than you owe if you enter a trust deed.

However, I don't think it's all that common. I guess there would be a higher risk of it happening if you owed a relatively low amount of money.

In DAS, you would never pay back more than you owe. However, that doesn't necessarily mean that it's the best option for you. Your adviser should really behelping you look at the big picture, not just this one area.

If the idea of paying more than you owe is something which is bothering you, discuss it with the organisations you speak to. Make sure that you get proper detailed answers, not just a general 'Everything will be fine'.

Hi Bluerobin,

As others have said it's unusual for someone to repay their debts in full by making increased monthly contributions in a Trust Deed. It's more common for an asset to be sold i.e. house or for someone to inherit an asset which is sold and then the debts are repaid in full under a Trust Deed. In all the cases that we have dealt with I can't recall a case that we have paid creditors in full by increasing someone's contributions.

If you can give us an idea of the level of unsecured debt that you have then we may be able to better advise you on the likelihood of repayment in full under a DAS or a Trust Deed. Is it possible to estimate what increase in income your husband is likely to receive if he found a full time job?

Thanks for the responses guys. My husband has been for an interview this week so fingers crossed! If he gets the job he won't be earning much more than what he gets now but least its a regular income. Spoke to our IP and raised our concerns, he's agreed to not only let us pay the same amount 4 weekly inline with my wage (another issue I've raised on this forum) but to reduce the term and write off £11k worth of debt. When asked how he could do this he answered that he reduced his fees - just goes to show how much some companies do charge!
Will still be seeking advice from another TD firm on monday to make sure we are getting the right advice!

Hi Bluerobin.

I'm not sure about the idea that your proposed IP has agreed to write off a certain amount of debt.

Once appointed its their job to recover whatever you can reasonably afford towards the debts. Changes in circumstances can make a huge difference to the amount that will be repaid during the term.

Hi Bluerobin,

Fingers crossed about your husband's interview.

Under a Trust Deed a proportion of the debt is written off providing creditors accept the proposal. Make sure you get everything in writing confirming the position with your house and what the monthly contributions that you will both pay.

Make sure you receive figures for both a DAS and a Trust Deed which will allow you to pick the option that you feel most suits you.