Hi Fredblogs and welcome to the forum.

Can you tell us a little more about your situation. What is your private income, how much do your debts total and do you own any assets?

The maximum payment you could be asked to pay in either a Trust Deed or Sequestration is £107 per month as the rest of your income is made up of benefits.

Your payment to either option is based on affordability. If after going over a thorough income and expenditure it turns out you can't afford to pay any payment then Sequestration is the best option.

Based on the limited information you have supplied so far I would lean towards Sequestration as a more suitable option.

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Originally posted by Fredblogs
[br]If my private income is only £107 and the rest is paid by the Government ie ESA DLA is it worth going into a trust deed or should I go into Sequestration,

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I have 14.700 of debt and have no assets I receive £107 private pension a month other than that just my ESA and Disability

Hi Fredblogs,

From what you describe then I think Sequestration is probably the most suitable option.

As i mentioned in my last post under a Trust Deed or Sequestration if you have a private income you could be asked to pay a monthly payment for 48 months. Under a Sequestration there isn't a minimum payment so if you can afford to pay £20 per month then you pay that. Under a Trust Deed you need to pay a payment which will cover the costs and one which your creditors will accept.

Sequestration does cost either £90 or £200 depending on your circumstances to apply.

The best way forward is to speak with a qualified expert who will work through your full financial situation, complete a very thorough income and expenditure and then advise you of your options and liklihood of a payment and if this would be required. I'd be happy to assist you with this if required.

The positive thing is that you have a solution that will help you become debt free from the £14,700 of debts.

Thank you, I have 14.700 of debt and no assets,I receive £107 private pension,the rest is ESA and DLA I do not own my home,I am afdvised by Knightsbridge insolency services to go into a trust deed but I am not sure now as they say it will take 5 years and I am 62,

Hi Fredblogs,

Given your age and income I wouldn't say that a Trust Deed is the most appropriate solution and especially not for 5 years.

As I advised you could consider Sequestration and even if you had to pay a payment it may be less than £107 per month and would only be for 4 years instead of 5.

If it was determined that you couldn't afford a payment then in fact you would pay £90 application fee and be discharged in 6 months from the Sequestration. This is why its key to speak with a qualified expert. In 10-15 minutes of speaking with you an expert could tell you if you would have to pay a payment or not and exactly how your sequestration would work.

I would seriously consider seeking a second opinion from an expert or speak with your local citizens advice about your circumstances. Don't go rushing into anything just yet as you don't need to.

A 5-year Trust Deed rather than a 4-year bankruptcy when you have no assets that you have to protect. Struggling to see how that could be best advice. Did they mention sequestration as an option at all?