Welcome to the trust deed forum lizzie.

Most trust deeds become protected; have a read of the interviews with Kevin, Shona and Mark (on the main menu of this site) to see what sort of percentages apply at their firms. You may find this reassuring, as you might also find reassuring reading around this forum where you'll find very very few threads about trust deeds failing to become protected.

If the worst were to happen you could choose to go back to a DMP. If the creditors accepted a DMP before they're fairly unlikely to refuse it at that point.

How much debt do you have?

How much can you afford to repay each month (or how much do you pay into your DMP)?

It might be worth reading about the debt arrangement scheme as well. This is a formal debt management plan option with the added benefits that interest is guaranteed to be frozen and that unsecured creditors cannot take legal action against you.

I'd say it is definitely worth looking into all of your options, lizzie. If you decide a trust deed is not for you then there is no harm done. And as Trust deed assistant says, if a trust deed doesn't work out then you could go back to a DMP or more likely switch to a DAS payment plan as this is almost invariably a better option in Scotland than a DMP.

Thank you so much for your replies it is a great relief to know that i could still have my DMP if i do go ahead with the trust deed.

This is scary

I am currently with a really good company for my DMP(Payplan)
and have been with them for 4 years (and they have been really great I have had no real problems with my creditors)
my debts stand at about £26,000. and i pay £190. per month
i have only ever had to do 1 low payment due to a family death
but feel i am still going to be paying when i am retiring

would i still have to pay the same amount if i did a trust deed

Hi lizzie.

It would just be a case of working through your income and expenditure to see what you can afford to pay. The methodology would be pretty much the same as that used by Payplan for your DMP so the results are likely to be similar.

Your debt management plan with Payplan appears to be due to run around 11.5 years, and that's assuming every creditor stopped charging interest soon after the DMP started. There's obviously an opportunity to deal with your debts sooner using a protected trust deed, though how important "sooner" is for you is a personal preference really.

Are you a homeowner?

Thank you for your reply

I am not a homeowner

I find it all just a bit scary as i have been one of the lucky ones on a DMP - but have been told this would be the best way forward to do the Trust Deed and allow me to get debt free in a better and quicker way.

Hi Lizzie, if you have no assets then a Trust Deed should be quite straight forward. Your Income & Expenditure would be assessed, and it is likely that the figure would remai about te same, as we mostly work of the same guidelines. If it does not become protected, then as TDA says, you can revert to your DMP, or use the Debt Arrangement SChemne. Get a face to face visit first, best to cover all options thoroughly before you leave the DMP.

Thank you

This has all been a great help and has really given me a lot of answers
and I think i should go for the face to face visit and tackle it face on

it is still worrying that it does not become protected - but at least i can then revert to DMP or other solution - as i see others in this forum have found their solution through being on here.

Hi lizzie

It is always best to look at all options and look at something which is workable over a suitable time period.

Don't worry too much about it being accepted, we can be almost 99% sure it will be accepted before it is sent as we work alongside the creditors, so there's very little trial & error involved.

Regards

Mark

It's great to hear that you find the Forum helpful. i love the fact that you get answers from everyone - most importantly, from the poeple who are in Trust Deeds, and have first hand experience of them.