Hi kc35,

Well done on taking the first step to deal with your debts and reaching out for help and advice. This is often the hardest thing to do.

If your property has less than £15,000 then this should not be at risk by entering into a Trust Deed. When you enter a Trust Deed, we would obtain a valaution and also a settlement figure for your mortgage prior to proceeding. We would then confirm this in writing with you. If it turns out you have some avaialble equity then you can extend your Trust Deed for 1 additional year.

Can you give me an idea of how much debt you have, how much you feel you can afford to pay per month and also if you have any other assets.

In terms of the Debt Support Trust, I don't think they are Insolvency Practitioners and therefore can't handle a Trust Deed for you directly. This isn't a bad thing, it just means your not speaking directly to the advisor you will be dealing with for the next 4 years.

We always advise a person to speak with a number of advisors regarding debt advice and to ensure that they have had all of their available options explained. Alternative options for example could be a Debt Arrangement Scheme.

Have a look on the forum and at previous posts from other people who have started their journey to become debt free. I'm sure this will help to reassure you that you have done the right thing reaching out.

The positive thing to remember is that you have solutions to help you deal with your debts.

Welcome to the forum kc35.

Well done on taking a big leap and reaching out for advice. I know from talking to many people over the years that this can often be the hardest step to take.

I think David has given you excellent advice. Getting everything in writing from the firm that will actually deliver the service (a trust deed or an alternative debt solution) makes good sense and will give you a lot of reassurance as you consider making a decision.

Hi David,

I have around £33,000 of debt and I am currently paying upwards of £900 a month which is totally unattainable. I think somewhere around £350 would be a much more realistic figure to give me some breathing space. Since speaking to a debt advisor I have read extensively and think that a Trust Deed would be my best option but I am unsure about the affect this will have on my husband's credit? (The credit is solely in my name).

The advisor also talked about paying a fee of £500 with regards to any equity in our home? We recently switched mortgage providers and the house was valued at £120,000 with £106,000 outstanding. If I entered into a Trust Deed would it be laid out in writing that my house was safe?

There is a lot to consider but ultimately if my home is secure I think it could be a way out of this mess!

Hi kc35,

Your right to want to ensure that you protect your property and that's something that is able to happen in a Trust Deed.

An agreement in respect of the equity is made on a statutory form (Form 1B) at the outset of the Trust Deed. This confirms the level of equity and what the agreement is.

The £500 payment doesn't need to be paid if you have no equity with my firm and the other one on the forum. This is one of the reasons why you should always speak with a number of advisors and things can vary slightly from firm to firm in that respect.

When you say your credit in your name, do you mean that the debt is only in your name?

Your payment per month to a Trust Deed is based on affordability and by completing a thorough income and expenditure with a qualified expert such as Kevin or I. This is something that we could certainly help with.

A discussion in person when it comes to a Trust Deed and especially when a home is involved is key to ensuring that everything makes sense. If this happens then things should run smoothly and without any problems.

That's the first we've heard of this £500 fee for a fair while kc35.

Paying that extra sum confers no particular benefit, other firms will provide the exact same reassurance without any extra payment needing to be made.

Do you have any joint financial arrangements with your husband? Examples would be a joint bank account or a joint mortgage.

Yes I have a joint bank account and mortgage with my husband, will this complicate matters? Another worry for me is that my creditors won't agree to the Trust Deed, can a firm advise me of the chances of it becoming protected before I sign?

Hi kc35,

A good knowledgable expert will be able to give you an extremely good idea of the likelihood of your Trust Deed being accepted prior to proceeding with it. We work to a set criteria which is set out by the creditors. For example Kevin or I would be able to give you an idea of the likelihood of your Trust Deed being accepted within 10-15 minutes of speaking with you.

Can you give us an idea of the people you owe money to?

Also, do you have an overdraft on your joint bank account with your husband?

If all of the unsecured debt is just in your name then it would only be you that needed to sign a Trust Deed.

Hi David,

I have credit cards with Barclays, Halifax, Natwest and Lloyds and a storecard with Next but my biggest concern is a huge personal loan with Rate Setter. Yes there is an overdraft on our joint account but the rest of the unsecured debt is in my name only.

Hi kc35,

All of those creditors are ones which I deal with on a regular basis and therefore know the criteria that a Trusd Deed needs to meet.

How much is the joint overdraft?

It's £2600.

Hi kc35,

Thanks for sharing this information with me.

If you proceeded with a Trust Deed then your husband would be liable for the overdraft debt. This isn't a problem it just means that he would need to come to an arrangement with the bank regarding this. It's called joint and severally liable.

Is there anything else which you are particularly worried about?

Thanks David, you have been a huge help. My debt advisor is calling me back tomorrow when she has had chance to go though all the paperwork that I sent her, can she then contact you or would that be something that I would have to do myself? I am now of the feeling that the quicker I can get the ball rolling the better and perhaps I will eventually get rid of the ball in the pit of my stomach!!

Hi kc35,

The debt advisor your currently dealing with won't pass me your details. I'm not sure where they will pass your details. If you would like my assistance you will need to click on the contact David button and I'll be able to assist you.

I suspect that they will pass your information to someone who will then need to go over all of this with you to confirm it.

A Trust Deed isn't something that should be rushed into but at the same time as long as everything has been done correctly then it could be set up within a matter of days. A valuation and settlement figure for your mortgage is the important part.

On occasions I have spoken with a client in the morning for advice and organised to meeting with this in the afternoon or the evening of the same day and put them into a Trust Deed.

I'm sure I can help get rid of the ball in your stomach very quickly and you will feel like you are in control again.

Hi kc35, Welcome and congratulations for taking this step looking for advice on the forum.

My wife and I, have just had our Trust Deeds approved and protected, and very importantly to us it's with our house protected.

We're at the start of our 4 year journey and I can honestly say to you, we felt exactly like yourself. But after a 2 hour meeting with David in our home, we had all our worries and concerns laid to rest.

I personally like the knowledge that I can speak to my "Trustee" David at anytime, he works for an Insolvency Practitioners.