The most recent debt was taken out for debt consolidation purposes

My car is worth around £500 it's an old x registration

Do you have a reasonable need to keep a car?

The car would be quite safe in either trust deed or br.

Be sure you arent leaving yourself short when working out your expenditure just so it looks like you have enough surplus to fund a trust deed. Be as honest with yourself as possible.

Paul

Thanks Paul 🙂

According to my income/expenditure i only have £148 surplus cash and been told this isn't enough to fund a trust deed...... My head is goin to explode!

When you look at that record of your expenditure do you agree with the figures that are presented there Lindseywalker87?

Do you think you'd need more to be able to live reasonably, less, or do they seem about right?

My trust deed initially started at £162 pm then in the final year my wage went up - so did my contribution by an extra £10.....It's all to do with the penny in the pound thing. If you go for bankruptcy put your expenditure up further and give them less - and that quote was from my trustee "who shall not be named".

Hi Lindsey,

Creditors generally look for a minimum return in order that they will accept a Trust Deed payment. At the moment a Trust Deed can be over 3, 4 or 5 years. If your unable to afford a payment over the 3 year period that will provide the minimum return then you can consider running the Trust Deed a little longer to achieve this.

When looking at your income and expenditure as Paul has said you need to be honest with yourself and not under estimate your bills to try and ÔÇ£qualifyÔÇØ for a Trust Deed which is what people can try to do.

A good knowledgeable advisor should work through a very thorough income and expenditure to see what you can actually afford to pay.

If once this has been completed your surplus income is £148 per month but for the creditors to accept a 3 year Trust Deed you need to pay £200 then you need to consider if it's possible to make any adjustments to your budget.

You may for example have a higher than normal sky/virgin package, you could spend £60-£70 per month on lunches for work, you could be overspending on your budget for shopping and clothes so sometimes with some financial management you could afford a payment to a Trust Deed.

If after looking at the budget there is no way of doing that then you would need to consider a Trust Deed over a longer period or consider Sequestration which would be based on what you can afford (£148) for a period of 3 years.

A meeting in person with an advisor who deals with Trust Deeds and Sequestration will really put you mind at ease as it's normally that advisor that will deal with either your Trust Deed or Sequestration from start to finish.

You need to think carefully about going onto a 4 or 5 year Trust Deed instead of considering a Bankruptcy over 3 years. Really there isn't much difference between them as we have already covered.

Try not to feel too stressed about everything, the positive thing to remember in all of this is that you have solutions to your problems which will provide you with debt relief.

Lindsey

Can I suggest that you get in contact with one of the guys on this site. A PTD is not the only option, also it is hard for them to comment on your circumstances without having the full picture.

You reckon you only have around £150 surplus, but is that with your current debt payments? if it is then you could still look at other options. There is a way out of this for you, we have all been in your position. You will see that lots of us here regret not looking to this site before signing, you have the opportunity now of not making the same mistake.

Just click to peak to one of them, or all of them.

That's before making any payments to my debts pingpong that's just allowing myself bare minimum to feed myself get to work keep my car on the road and pay my rent council tax etc

So I'd say I agree with the figures

I agree with pingpong Lindsey, the trustee's who contribute on this website are ace, its worth getting in contact with them and discuss things over; don't just jump to the first person who offers a trust deed. I strongly advise you do this - I hope you do.

Hi Lindsey

Creditors allow minimum/maximum figures for expenses, so it would certainly be worthwhile sitting down and completing an income/expenditure sheet.

I don't think DAS is a viable option in the circumstances and depending if the surplus could increase, then the trust deed may well be an option. If not, sequestration would be workable and run along the same lines. Perception of sequestration is the hardest thing to overcome sometimes, but it's never quite what people think. It allows you to deal with your creditors over a set 36 month period.

Mark

Just to add to Marks comment

My wife was sequestrated instead of a PTD because she was not working and I could not pay her contributions as well as mine even though we had the same creditors. She was discharged after 1 year and has never made any contributions other than the equity in out house.

Here's the thing though, you would never even know she had been made bankrupt if you looked at her. No flashing lights, no indelible ink marks on her, she's perfectly normal (other than she is pregnant but that's been the norm for the last 4 years!). One year later she has a next account, mobile phone, bank account (and most importantly me!)

Good luck! see you on the other side (of insolvency that is)

Thanks pingpong the word bankruptcy or sequestration is quite daunting......so thats put me at ease a bit thanks for all your comments guess i need to have a long hard quick think