Welcome to the trust deed forum The pict.

Some very good questions which I'll work through:

You pay the trustee, and it's for you to satisfy yourself that they're reasonable before you go ahead. It's important to take an interest in this subject, fees that are too high can result in trust deeds failing to become protected or trust deeds than run longer than they might otherwise have had to. The fees themselves are taken from the funds that you pay into the trust deed.

If you are asked to pay fees that seem high then you could speak to another trust deed provider to get a comparison. If you are asked to sign a trust deed that will last more than the usual three years it would be a good idea to do this. You could also raise any amount you are advised of here in the forum to get some feedback.

The percentage of your payments that will go to creditors will vary from case to case. It depends on how much you are paying into the trust deed and how much your fees are

Most trust deeds last for three years, then take a few weeks to close thereafter. Sometimes this period might be longer. This might be because it's the only way to offer enough to your creditors to get the trust deed protected. It might also be because you're paying excessive fees. If you have any further responsibility, such as contributing any equity that was in your home, the trust deed will remain in place until that is done.

A trust deed provider must have an Insolvency Practitioner who is registered with one of their relevant professional bodies. You can check with the professional body to reassure yourself that your Trustee (the insolvency practitioner) is suitably qualified and registered. Many have websites with their members listed.

Service quality seems to vary from firm to firm. Therefore finding a company that you have reason to trust is important. Someone you trust may be able to recommend a company to you, or you might speak to a few so that you can make an informed choice. Reading around this forum you'll find some subjects that you might want to ask about before you sign anything.

If you are unhappy with a Trustee you can raise the matter with their professional body (generally once you've given them the opportunity to resolve it first).

TDA summed it up perfectly,

Best advice is to ensure you meet with the IP and sign nothing at the 1st meeting. Make sure EVERYTHING is confirmed in writing before making any decision. The position concerning fees, closure of cases etc should be outlined and agreed before anything is signed. Fees vary from firm to firm, but are agreed and paid by creditors, never as an additional payment. Contributions are based generally on surplus income.

If you follow the above, it will hopefully be straightforward and trouble free.

Mark

It would seem that there is no hard and fast regulation then? it seems to be all centered around "it depends" and really unless you owe 10's of thousands it really is not such a good deal as, as far as I can tell the creditor gets a reduced ammount and the trustee the rest I think better legsilation is required here with fixed fees say per £100 owed and a clear understanding of how much actually goes to the creditors and there does not seem to be any advantage to these trust deeds at all surely one would be better agreeing with the creditor a payment plan I mean if they are willing to reduce the ammount owed with a IP why not with the debtor also if they are not willing to do this why not let it goes to court then the bench can decide based on ones effort to reach agreement and the circumstances one has found oneself in, and one final point there seems to be no official information available on this as a result we are left with only the IP advice which to say the least is like taking a bookies advice on which horse to back,my Daughter is paying £200 PM over three years for a £6k credit card(s) debt which seems totally wrong and having only just found this out I intend now to challenge her entire arrangement
Per Mare Per Terram
Pict

Hi pict

There are hard and fast rules in Trust Deeds. IPs work on a time on line basis like accountants, lawyers etc. The fee depends on the work involved and outlays incurred.Also, creditors agree the fees at the outset and review yearly.

Creditors rarely agree with individuals as this would open the door to everyone, whereas the Trust Deed legislation is legally binding.

I am surprised that the Trust Deed was set up for £6k debts DMP or DAS would appear to be better options.

Finally re the court action. What about the court action costs, £1000-£1500 to be added to the debt, then decree is granted and a wage arrestment put in place with interest continuing to accrue.

Mark

I take your point,but I still believe that it is handing a loaded gun to a complete stranger in the hope he knows how to handle it safely,my daughter appears to have been mislead into thinking that this was her ONLY solution but as you have pointed out there are alternatives and I think my next step is to find out if this was made clear to her,although it may well be to late I doubt very much if,even if I could have the whole thing cancelled any other ip would take it on
Pict
Per Mare Per Terram

Please let us know what you find out The pict. Anyone considering a trust deed should certainly be made aware of the alternatives before they sign.

It would seem that the debt originally was 6K+ however after added interest and other penalty charges it ammounted to 8k+ and given my daughters circumstances at the time on the face of it a TD was in her best interests as at the time there was no clear indication her circumstances would improve in the forseeable future She has now less than a year to go and although she has had a few finacial setbacks this has not appeared to be detremental to the running of her agreement On the bright side she is now studying again and well into her course and handling her placements with her usuall determination, all in all it has to be said that her current positive situation has been, in part, due to the TD taking the pressure and worry from her and allowing her more freedom of thought, So my concerns were maybe unfounded, but caution, as the advisors have said, is always a good thing.and I dont think anyone should shy away from taking along a friend to any of the pre TD meetings
Per Mare Per Terram
Pict

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