Hi cjk

You are not tied to anything until you sign on the dotted line.

I think it is always wise to ask as many questions and not to put up with might be/could be answers. Before doing anything you should be 100% sure and have no doubts.

Re the car, the loan would be a creditor in a trust deed and the general rule is if the car has a value of £3k or less then there is no interest in it.

Mark

Hi cjk,

Welcome to the forum and well done on taking steps to deal with your debts.

I think it's always best with anything in life to ask for a second opinion or to speak to more than one person especially when it comes to dealing with your debts and choosing which firm to deal with. I would always suggest sitting down with an advisor in person to discuss your whole financial situation. You want to ensure that you have looked and discussed all of your available options from a Trust Deed, Debt Arrangement Scheme and Sequestration.

As Mark said, you're not committed until you have signed on the dotted line.

Can you give us an idea of your situation i.e. how much debt you have, what assets you may have and also how much you feel you could afford to pay on a monthly basis to a plan?

With regards to the car, if it's just a normal loan agreement then this debt is included into the Trust Deed and you no longer have to make the payments. A good knowledgeable advisor will be able to check this for you. If you look at the finance/loan agreement it should tell you what type it is on the top of the first page and also in the box where you sign. Any car worth less than £3,000 isn't an asset and not taking into consideration. Generally cars aren't a problem.

The main thing you want to ensure is that you receive everything in writing with regards to your payments, timescale and what will happen to any assets that you have. You also want to be confident in the firm and advisor that you choose to deal with. Every question you have should be answered in full with no unknowns.

One thing to keep in mind is that at the moment Trust Deed's last for a minimum of 36 months. On the 28th November 2013 this minimum timescale increases to 48 months.

Unless I picked her up wrong when having discussions earlier the car is included in the trust deed payments but then reverts back to normal payments when this is complete. Have I got that right?

Hi cjk.

If it's an unsecured loan for the car (not hire purchase, conditional sale agreement etc) the loan and the car are unconnected.

The loan would go into your trust deed, any payment that they get would come from your trust deed rather than you.

At the end of the trust deed, when you're discharged, that debt will no longer exist. You'll have no payments to make.

Do you have the original loan agreement?

How much do you think that the car is worth now?

It's a "10" plate Astra which I'd reckon to be worth £5.5-6k perhaps? It is definitely a "Personal Loan" on the paperwork.

Hi cjk.

It certainly sounds like an unsecured loan and this is something your adviser or advisers will be able to confirm for you very easily.

Because of the value of the car there may be extra to pay to the trust deed in addition to the normal monthly contributions (which typically run for three years - for another fortnight or so at least!).

Has the subject of the equity in the car been discussed with you by your current adviser?

They did mention it but I obviously misheard them when they discussed what would happen afterwards!

If I speak to an advisor today/tomorrow, depending on work what would the likelihood of it being a Trust Deed being set up by 28/11/13?

Hi cjk.

There's probably two factors involved in this:

1 - How quickly you can supply the information required.

2 - How quickly the firm that you choose can act to get everything done to put you into a position to sign the trust deed.

Reading recent threads where Mark and David have contributed I can see that they're conscious of the relatively tight timeline but don't see it as being an issue yet. We seen plenty of threads here over the years when people have been able to set up trust deeds very quickly when needs be. It's certainly a question to be asking any firm that you're thinking of using though as it will vary according to their resources and how busy they already are.

I've got the paperwork here as I've already spoke to a company that I'm not convinced about. In all honesty, this place seems more human!

As an aside, the company I was speaking to did not highlight that the time frame for a Trust Deed was extending. Of course, this could have meant they would have it completed in time but it would have made more sense to at least bring it to my attention.

Hi cjk.

There's certainly plenty of information washing around this forum. The people that are featured answering questions here are all human as well - we've met every single walking breathing one of them!! More than anything else I think having a huge network of other forum members that have experienced similar situations, thoughts and concerns does help to make things feel much more human.

If you've got all of that paperwork and want a second opinion I guess it's just a case of getting in touch with someone. They should be able to tell you pretty quickly whether they'll be able to meet with you and draw up the paperwork within the requisite timescale. I don't see that this will yet be an issue at all for most firms.

Thanks! When I get a spare half hour or so from work I'll give one of the companies here a call.

quote:

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Originally posted by cjk

It's a "10" plate Astra which I'd reckon to be worth £5.5-6k perhaps? It is definitely a "Personal Loan" on the paperwork.

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What will it be worth in 3/4years? try to get the equity in the car clarified from the IP, if it is worth over 3k now will they want the +3k at the end of 3/4 years when it may not be worth as much.