Hello Gasman and welcome.

I'm sorry to hear that your trust deed hasn't worked out as you hoped.

There is no requirement on a trust deed provider to accept early settlement. There are arguments against it, for example the fact that an early finish might prevent creditors from benefiting from a windfall that later came your way.

Would going to your creditors have worked better? I guess at this point you'll never know. Sometimes people have a tough time co-ordinating affordable reduced repayments between a number of creditors, though it might have been more straightforward with just two. There would be no guarantees of acceptance, interest ceasing or protection from legal action.

I understand that hourly charge-out rates like £160 seem very high. They are in keeping with other similar professionals like accountants and lawyers though. As you say, they're taken from the funds contributed to the trust deed so some people might feel that the creditors are really bearing the cost. They consent to the fees when they allow a trust deed to become protected so have the opportunity to object if they believe them to be unreasonable.

Thinking twice before starting a trust deed certainly makes sense. It's important to understand the comparative advantages and drawbacks of the alternatives before going ahead so that an educated decision can be made.

As for closure taking 6-12 months, practice seems to vary widely between firms. We hear from the firms that post here that there is no reason normally why it should take more than a few weeks once the final payment has been made.

You shouldnt just think twice about a trust deed, you should think twice and then twice more. Its a formal insolvency which ruins your credit file for at least 6 years. Its a strict budget to cope with while it lasts, it is NOT an easy fix for debt.

But its also a fanastic tool when correctly operated to allow unaffordable debt to be written off. It allows a fresh start. It gave us our life back.

It shouldnt be entered lightly. I want a newer car but will sruggle to secure the finance needed probably until the td drops off my file next may. Small price to pay for how our lives are compared to when we were 80k in debt.

Paul

I'm not sure why it would take 6-12 months to close. I would have thought all claims would have been received and agreed in a 30 month period. It normally takes us 3-4 months from the signing to achieve this.

I'm also not sure how contacting creditors directly would resolve matters or in what way the trust deed has not worked.

Mark

Trust deed companies are businesses and as such they have to make a profit on their transactions. Some will be more open than others and some will charge more and some less. There will always be an element who will exploit gullable public.This is not news (or shouldnt be) you have to accept responsibility for your decisions in choosing a company. In this forum there are many companies who give free advice and seem to be fairer than most in their dealings with their clients.
perhaps if you had used them you wouldnt have a complaint but they would still be charging for their services.

Hi gasman and to all who are considering trust deeds, exhaust all your repayment options first, before deciding on the best option for your own circumstances. I can only say on my own personal experience that it's been my life saver.
I don't care how much my trustees charged me, to get the letters stopped, the phone to stop, the visits to stop, the chance to put my head on the pillow and sleep, if I had a million they could have had it. 3 years on and my life is finally turning round thanks to my trust deed.
Best of luck and hope it all works out for you.

No decent IP firm would do anything other than help you consider all of your options, so that you can choose that which suits you best. A payment arrangement with creditors might be what many people prefer and that is great, but if such an arrangement is going to take a very long time to complete then a trust deed can often be a more realistic alternative.