Recently I have managed to get overtime. After overtime I'm left with £50 a month so basic wage won't cover my bills. I never took loans to then get a trust deed. Unfortunately I didn't calculate well enough. I would've thought companies would take more interest in my income and ability to pay. It's my own fault but just thought they would.

Just don't know what to do if every thing fails tbh.

What's your opinion on what might happen?

Hi Andrew,

A lot of factors are taken into consideration when a company considers your Trust Deed proposal. There are two main organisations that represent most of the individual lenders. The are:

The Insolvency Exchange
Watch Portfolio Management

These two companies represent most of the lenders and set out the criteria that they will accept. This tends to come down to the following categories:

- Income & Expenditure - this can't exceed the guidelines for spending
- Level of Contribution
- Dividend - return the lenders will receive at the end
- Level of fees charged by the company administering the TD
- When you took out the debt
- Excessive recent spending
- The companies reputation who you use for a TD can als have an impart

To stop your TD going ahead a majority of creditors in number or 1/3 of your total debt balance need to object and say no. They have 5 weeks to consider an offer and if they will accept it or not.

From what you have told me I think you stand a good chance of having a Trust Deed accepted. Without actually going over a thorough income and expenditure with you or actually speaking with you on the phone or in person it's hard for me to give a definitive answer.

How regular and guaranteed is your overtime and will it last for the next 4 years? What would happen if this stopped? Could you maintain your payment to the Trust Deed and still cover your bills and live? Again these are things a good advisor should go over with you as they should look long term at your financial circumstances to ensure you can sustain the payment. It's too common people being put into the wrong plans for the wrong reasons.

Even in the worst case scenario that your Trust Deed did fail to be accepted by your creditors then you can consider Sequestration. The creditors can't reject this so you will still be debt free in 4 years. You also want to check with the advisor your dealing with that if that happened they would handle a Sequestration for you as not all firms do. My firm are a firm that handle all of the solutions. We actually handle over 100 Bankruptices per month on behalf of the Scottish Government and are their current number 1 provider of Bankruptcy services.

Ok thanks. I have made up a spread sheet if you care to take a look I can send it.

Hi Andrew,

Ovcourse I would be happy to take a look at it and help you with it.

If you click the contact me button below my posts you will be able to get in touch and I can let you know my thoughts.

As I said a good Expert with experience who actually handles Trust Deed proposals on a daily basis can look at your full situation and within 5-10 minutes can give you a very good indication if your Trust Deed would be accepted or not.

I have done that. I cannot talk on the phone whilst at work tho.

That's ok. I'll have a look over it for you and then get back to you via email and we can perhaps arrange a suitable time for later on today or tonight to have a quick chat about it and I can give you some feedback and reassure you.

How do I send it to you?

If you click contact me and submit your details I'll send you an email and then you can email me back with the excel spreadsheet.

If I put my email address on the forum I end up getting a lot of spam emails.

Ok I've done the contact me part

Hi, I've got it and emailed you back with my details.

Thanks but I haven't received a reply with your details. Checked junk mail ect too.

Hi,

Ah sorry. Just double checked and your email address had .con at the end. I didn't notice this when I clicked on it. I've resent the email now and put a delivery receipt on it which has confirmed it's correct.

Look forward to hearing from you with the information.

Thanks I've replied to your personal email

Cheers

Hi Ac1987

Just to be clear about the guarantor loan - you are not allowed to pay this yourself if you go into a trust deed, whether directly or via your guarantor. This is because you have a legal obligation to pay whatever you can afford into your Trust Deed and are not allowed to pay any one debt in preference to the others, which is effectively what you would be doing.

It would be different if it was your partner for example paying to your guarantor instead, the you couldn't do this yourself.

Okay that changes things then. I wasn't aware