Hello jay421.

As mentioned on your previous thread there is no rule of thumb regarding short-settling debts. Some may discount a lot, some a little, others not at all.

It's usually a pointless exercise settling debts in this way if some debts remain unsettled and the repayments continue to be unaffordable.

Speak to each of your creditors to see what they say. You'll quickly get an idea whether this idea is a runner for you.

There's no six month rule about applying for a trust deed after one fails, it's really just down to whether creditors will agree to accept it or not. If there's a good genuine reason for the previous failure (which I'm aware from your previous thread that there is) there will hopefully not be too much of a problem.

I note a 5 year trust deed has been suggested. I recommend speaking to one or two other firms to make sure this extended term (or all of this extended term) is necessary.

Your business expenses are what they are. As a rough guide, if HMRC will accept something as a business expense I'm sure a trustee would also do so.

Lots a self-employed people have variable income and lots of self-employed people set up trust deeds. A common sense approach is needed to set a payment that's likely to be affordable based on past trading history and future expectations. In terms of trust deeds you will need to be prepared to accept that if you exceed your expected earnings then further contribution will be required. How much exactly is something you could discuss and get agreed with a trust deed provider in advance.

I did find the 6 month thing a bit strange. And that's from an IP as well.

The only way to do it would be to do a full review and agree an payment based on average income as this is likely to fluctuate. The same would apply to the £15000 as the Trustee will require to look at the costs involved in obtaining the funds.

Mark

No harm in offering short-settlement to your creditors, jay421. Considering you've already been in a trust deed, albeit without completing it, I'd have thought that creditors will be far enough along the collections route that they will be realistic about coming to an agreement and may well accept a lump sum.

A trust deed may be the answer if settling proves too difficult. We would look at average income when setting a contribution level, and any contribution from the lump sum would be assessed in that context.

Hi jay421,

Sorry to hear that you were unable to see out the first Trust Deed especially after being in it for 2 years.

As others have said, I'm a little surprised about the 6 month break between your last Trust Deed and a potential new one.

As Kevin and Mark have said your income will need to be assessed on an average basis and from this it can be worked out what level of payment will be affordable. A good advisor will be able to do this with you very thoroughly.

In relation to the lump sum, again expenses and outlays need to be taken into consideration and also the fact that your income can fluctuate. What if you don't secure another freelance job paying that sum of money for another couple of years? These things need to be taken into account. Sitting down with an advisor you will be able to discuss how much of the lump sum should be paid over. it's always best to sit down with a couple of advisors to get their points of view on you particular set of circumstances and you will then be in a position to proceed with whoever you feel most comfortable with.

I don't see why (providing you enter into a Trust Deed before the new changes) you couldn't look at a Trust Deed over a 3 year period.

You certainly have options available to deal with your debts jay421 it's just deciding which one would be suit your circumstances.