HinTDA...Trust deed wasn't explained to me properly then my understanding was 48 payments of a set amount I didn't even know the payments could fluctuate! So is it possible then to clear all debts & fees & be discharged from trust deed?

Hi Kl20,

The only way to be discharged early would be for you to pay the £21,000 plus statutory interest at 8% per annum plus the Trustees costs.

If your circumstances stay the same then your payment remains the same. If things change and your income increases then you can be asked the pay an increase in payments. For the majority of people I deal with their income is pretty consistent and steady and therefore their payment remains the same.

How much does your income fluctuate? Your Trustee could have looked at an average income and therefore it may have been already taken into consideration.

I can understand that you are feeling unhappy that things have not been explained properly but I do think a Trust Deed is a suitable option for you. Your options to clear your debts in a similar timescale would be extremely limited if not impossible and you could end up paying your debts for 10-15 years.

Try not to focus on the negative but the positive in that you will be debt free in 48 months.

For anyone else reading this it goes to show the importance of doing some research, asking loads of questions and speaking with a number of advisors from different firms to gauge the level of information you are being supplied with.

Hi David thanks for replying. I wish I could stop feeling negative but I'm just really upset with advice I was given and lack of information to make an informed choice. I understand your reply but at time of PTD I was going through a stressful time in my life & feel I wasnt in a good position to make a choice of going ahead with trust deed. Looking back now with a clear head I feel I had other options which I could have taken.

Hi Kl20,

What other options would you have taken looking back now?

Hi David without going into too much detail on here, circumstances change but being tied into a trust deed doesn't give u a chance to easily change things & move forward. If I was in a debt plan just now it would be easier to deal with my debt

I think that's probably right Kl20.

Trust deeds are flexible to changing circumstances and will adapt as an individual's circumstances change. They're not flexible in respect of being able to readily switch to a different option altogether if you change your mind later.

The point you make about feeling a little desperate at the time you began your trust deed is well made. Many people are in the same position when they first reach out for help.

There's an obvious obligation there for firms to be conscious of this when dealing with enquirers. Equally, I'd advise other readers of this thread to be conscious that making decisions when worried or stressed becomes more difficult.

It's very important to make the right decision; much less important to make an immediate decision.

Take a little time to be sure in your mind that you're doing the right thing with the right people. Be sure than you can in your mind compare the advantages/disadvantages of all of your options.

Sorry that we haven't been able to help you more Kl20, but I do hope that this trust deed works out and serves the purpose of leaving you debt-free with a fresh start in the relatively near future.

Hi TDA I honestly feel the information and advice I was given at the time of trust deed did not allow me to make an informed choice. At no time during my appointment did the advisor explore other options with me, if given the proper information I would have preferred a debt plan, although a debt plan would have taken 9yrs to pay off at least I would have had the opportunity and more flexibility to change things. If imhad known there was no way out of a trust deed and u were tied in this way I would never have signed up to it. It's probably partly my fault for not looking into things properly but I also think the company have to take responsibility for not fully explaining things to me.

I know I should have read the paperwork properly but at the time I was in a very stressful situation and wasnt thinking straight.

Understood Kl20. It's a great shame that this has all worked out in a way that you regret.

I do hope that you're able to find some positives about the process over the course of time.

TDA If I want out of the trust deed I know have to fully pay creditors, 8% interest per year, do I have to pay the full fees of the company for the 4 years or would it be broken down into yearly figures?

It would be full fees at the point of closure Kl20.

This might not save quite as much as you hope as a lot of the work/expense connected with a trust deed takes place at the start when it is first set up.

TDA would it be possible to private mail you for some advice?

Hi Kl20.

Our advice team (including myself) correspond directly with enquirers who are working out how to tackle their debt problems and which solutions will work for them. That's where our training and experience really is.

We are often able to point people in the right direction regarding trust deeds that are already in place, but we do that here in this forum with the support of Kevin and David. They're insolvency professionals, so they add a different perspective and knowledge which leads to people getting better and more rounded answers here.

Would I be able to speak to someone for advice, I dont really want to put on here what I was told by the company I went with

Would I be able to speak to someone for advice, I dont really want to put on here what I was told by the company I went with