Hi Alan1240,

Entering into a second Trust Deed is a lot more common that you would think and normally doesn't cause any problems. Many people for a variety of reasons can find themselves financially struggling again and need the help and I've lost count of the people I have helped with a second Trust Deed.

Can I ask a couple of questions:

Have you completed your first Trust Deed and received your discharge?

How much do you owe to Barclays and Shawbrook?

Do you have any assets such as a house or car?

The best way forward is to speak with a qualified expert who can give you a very good idea if a second Trust Deed will be accepted and also what alternative options you could have a such as a Debt Arrangement Scheme or Sequestration. Have you done this with an expert her face to face?

Evening David ,

I am fully discharged it's no longer on my credit file about 3 years roughly .

Balance's

Barclays £5000 c/c

Shawbrook £3600 loan

Santander £11500 loan

Car no h/p worth £3000 (need for work)

Mortgage joint negative equity balance £65,000 valued @ £60,000

I have spoken with a profesional over the phone and they seem to be very confident there will not be a problem i just was looking for someone who has been in a similar position as myself with similar lenders.

Hi alan1240,

Barclaycard have a tendency to object to Trust Deeds but as their balance is less than 1/3 even if they do they can't stop it from becoming protected providing the other two don't object.

When it comes to Santander they are represented by an organisation called the Insolvency Exchange. As long as the company you are speaking with meet their predetermined criteria then you should be fine. A big factor for them is your income and expenditure statement and your monthly payment. Have you went through a very thorough income and expenditure with the advisor?

When you say spoke to a professional on the phone, are you confident they are a qualified expert and will they be the advisor and company who will handle your case from start to finish? A lot of people speak with someone on the phone and that person might not be a qualified insolvency the advisor or the advisor who will handle your case for the full duration. Also the first company might not be the company you sign up with.

It's important to do your own research about the advisor and company you are speaking with. That way when you do proceed with a Trust Deed you know exactly how it will work and you shouldn't run into problems. Things can vary from firm to firm.

Things to clarify is how quickly you will be discharged from the Trust Dees upon completion of your payments at the end as until you receive this you are still tied to the Trust Deed. This is something that people overlook at the start and don't think about but it's a vital thing. Some firms are 6-12 months from final payment and some are 4-6 weeks. The quicker the better.

Also if you do have any assets you need to discuss how these will be dealt with and receive this in writing along with your payments and to make sure the timescale is 4 years for your Trust Deed if you don't have any assets.

Like I said if you take your time and do some research then you should be fine.

Hi David ,

I have went through the income & expenditure and payment has been quoted and the company is trust deed scotland .

Hi alan1240,

As far as I understand Trust Deed Scotland and their advisors won't be the one who will actually be legally responsible for your case and deal with it. I think they will pass you to another company for your Trust Deed. There is nothing wrong with this but we always recommend dealing with the advisor and firm that will handle your case from start to finish. This is something you should check with them and if they do pass you to another company you want to double check everything you have been told by Trust Deed Scotland still stands and nothing has changed.

To give you a comparison for example with Kevin and I on the forum as advisors we handle everything to do with a clients case from start to finish and are their point of contact for the full 4 years. That's where there can be subtle differences between firms and advisors.

In relation to your situation and the income and expenditure, do you do overtime or receive bonuses from work?

Hi David,

7 hours overtime a month, bonus is profit related so nothing is a guarantee.

Hi alan1240,

Thanks for sharing some more information.

Was anything to do with overtime or potential bonuses discussed with the advisor?

Over the last couple of years have you received a bonus from your employer?

Hi David,

About £900 over the course of a year again no guarantees yes advisor knows this information and they calculated a average monthly salary.

Hi alan1240,

Was it explained that if you receive a bonus accordingly to the legislation then the full amount of this can be taken into the Trust Deed for the benefit of creditors? It's just something to be aware of and know up front so there are no surprises. Bonuses back when you did your first Trust Deed were treated differently and we used to allow a client to retain a good proportion of this. The Government tightened this part up and have said that all of a clients surplus income should go into the Trust Deed.

What about assets, do you own your house or car?

Hi David ,

The average was actually more than my nett pay without bonus actually £100 more.

Car no h/p worth £3000 (need for work)

Mortgage joint negative equity balance £65,000 valued @ £60,000 .

Hi alan1240,

Are they factoring in the bonus into your average income over 12 months? I'm a little unsure what you mean about the average being more than your net pay.

Have they actually valued your car and obtained a valuation of your house? It's very important than when it comes to your assets you receive in writing exactly how these will be treated.

Also, have you been asked to pay any kind of abandonment fee because your house has negative equity?

Hi David ,

No discussion of a abandment fee 48 payments & average over 12 months with overtime & bonus based on take home pay after tax as bonus is capped .

That all sounds sensible alan1240 and good there is no abandonment fee involved.

Have they organised for a chartered surveyor to value your house? that's the most important thing. Make sure that when you come to meet the advisor who will handle your Trust Deed to sign the paperwork that it confirms the position with the property and that it has negative equity.

Do you have an overdraft on your bank account? In the first couple of weeks have some emergency cash on you as its becoming a little more common that banks are temporarily freezing a clients bank account for the Trustee to confirm they are happy for the client to use the account. It can mean having no access to funds for 24 hours unless it's frozen on a Friday it can be the Monday. I always advise my clients to keep cash handy just in case.

Hi David ,

I have no overdraft & 2 other bank accounts and will have temp funds, they have already had a chartered surveyor to value the house & i will make sure as you have stated it confirms the position of my house, as stated at the first post was feeling nervous that a second trust deed wouldnt be accepted by my creditors.