Hi prenticebaby.

I've just read back over your previous posts; this is the fixed sum loan from Santander used to purchase a car I think?

If other companies object the trust deed may fail to become protected. Often in such circumstances bankruptcy will be the outcome in this scenario, but that doesn't have to be the case.

However, if the trust deed provider you're working with know what they're doing they will know the acceptance criteria of the other creditors and can therefore be pretty confident of the response they'll receive. I appreciate that's a leap of faith from your point of view.

Your creditors will generally only ask for a payment to be increased if they believe that the detail in your "income and expenditure" statement suggests that an increase is affordable for you. Again, any decent trust deed provider knows what is and isn't acceptable levels of expenditure.

You can seek advice from as many sources as you wish. As you are clearly uncertain about a few things it might be helpful for you to do so.

Thank you TDA. I am uncertain and just want to be sure this is the right thing for me to do.

I am about to miss the first payment to my credit cards and loan this month and no doubt the companies will be starting to chase me for payment. I would like to get this sorted sooner rather than later.

I will make contact with one of the experts on the sight who may be kind enough to meet with me.

It'd certainly take a long time to repay your debts in full prenticebaby, so a trust deed may well be the answer. I presume there are no issues with equity/assets? And you aren't in a job that would be affected by insolvency?

Hi prenticebaby

I'm surprised a wee bit at the comment that they would definately reject the proposal. Not in my experience.

Mark

As far as I know there is no equity in my home but would be keen to have a valuation done prior to proceeding. I'm also a bit worried about the car given this is the largest sum at 13,500 which needs to be included. I work in local authority as far as I know my job will not be affected. Thanks for the replies.

Hi

Yes, getting a valuation first is really important, and to get matters in writing. It would be highly unlikey for your job with the authority to be at risk by signing a Trust Deed.

As it is a car loan that you are referring to then I imagine the finance company will be looking closely at the proposals to check that the value of the car is being gathered in for the benefit of creditors. Is this why the adviser you spoke to thought that Santander would reject the proposals? Did they mention having to gather in funds in respect of the car on top of your contribution payments prenticebaby?

Hi Kevin
The advisor didn't mention any other payment towards the car. He advised that santander have a policy that it is black and white so to speak but didn't elaborate as to why they would reject.
A further payment on top of 300 isn't an option.

Thanks

How much do you think that the car is currently worth prenticebaby?

Hi tda
I went onto parkers and it looks like my car is worth 7500 selling it private in poor condition as I was advised it would be valued on that basis.
Thanks

Hi

If your car is required for work, then the Trustee may be happy for you to keep the car as it allows you to work, and subsequently make a monthly contribution. The car would however be valued again at the end of the Trust Deed, and a payment may be required at that time. This may be a lump sum, or your contributions could continue for a short time to raise the money - rather than pay more every month.

So the adviser told you that the car would be valued on the basis of a private sale in poor condition but didn't actually discuss with you how that value would be taken into account in the trust deed? Sounds like they are only telling you half of what you need to know - best get some clarification from them I reckon.

They did advise that if it was worth in excess of 3000 at the end then a lump sum payment would be required or the t.d could be extended, don't know how accurate this info is.

This kind of arrangement is common, however the problem in your case is that Santander are owed £13.5k as a result of you purchasing the car. Therefore they are probably going to expect that some of the value of the car is gathered in to the trust deed.

If your total debt is around £5k then the debt to Santander is actually just over a third, so unless the proposals show a reasonable amount being paid over in respect of the car then you may well have difficulties getting a trust deed protected.