my maths isnt good. i meant 350 * 36 so it would be more than 10500 ooops

Lump sum Trust Deeds exist but they relate to asset realisation when the Truster (person signing Trust Deed) has no disposable income to pay a contribution towards the Trust Deed but does have an asset whilst can be realised.

Yes you can ask what the fees are at the first interview and it will make sense to ask that question as it will affect the level of dividend paid.

You may wish to approach various IPs to ascertain the level of Fees charged. Bear in mind that there are outlays related to the Trust Deed as indicated below and these may be included in the estimated fee level.

VAT at 17.5% on the approved Fee
?ú250 Audit Fee to the Accountant in Bankruptcy
?ú36 Registration Fee
?ú70 (approx) to Advertise in the Edinburgh Gazette
Other costs associated with Property Issues (e,g Valuation & Inhibition)

The firm of Insolvency Practitioners will go through a budget (Income & Expenditure) - Have some figures available before the meeting for your essential expenditure (Rent, Council Tax, Utilities, Telephone, Food & Housekeeping, Clothing, Travel are some of the main costs you will be asked about).

Ask them to provide a written assessment of your situation as outlined at the interview. Hopefully they will go through the various options available to you (Debt Arrangement Scheme, Sequestration, Debt Management)

Ask about the likely dividend payment to creditors as this is important. Some creditors are represent by other agencies who will object to Trust Deeds if a 10p in the ?ú dividend is not met. In relation to this matter ask the IP what will happen if the TD does not get through the "protection" process.

Given the potential funds available from a third party you may also wish to consider an approach to your creditors in relation to an offer of a full and final settlement.

For example if your debts are ?ú21K you could make an offer of 50p in the ?ú, which would be a lot better dividend to creditors than them having to deal with a Trust Deed process.

Insolvency boy,

Thanks a lot for your informative post, very impressed.

Yes i was considering full and final settlements but as my debt is a touch above 40k...all at various stages...some nearing court action, about 4 defaults already, i think a trust deed is th emost likely option.

As i do a lot of contracting work...i cna have a decent job paying 24-28k for 6 months, but then have to wait 1-2 months to find another job with similar pay. Then get another 3 or 6 or 9 month contract depending on whats available.

So this is why im thinking getting my parents involved from the start to pay up the trust deed would be easier and better for the creditors as otherwise ill have to stop and start payments. The way it would work is realistically i could afford 325 a month towards my debt. SO over 3 years this is...11700.

No other assets or income.

Depending on trustees fees...to get the 10p in pound figure...the fees would have to be less than 7700.

I presume fees could range anywhere from 2-4k (complete guess on my part).

How do you know so much about all of this insolvency boy, i'm impressed.

Also in terms of income and expenditure, i know there are guidelines amounts that should be followed, well roughly.

Im very bad with budgeting and know usually i have very little towards the end of the month, but usually due to bad planning.

Currently in a dmp paying 295 a month with a private company, but want out of this as getting charged by them too ( should have went to one of the free ones but never realised at the time)

Im 31 single..renting and all the usual stuff on top of that.

Hi grant40k

If you were to propose a lump sum Trust Deed, then the time period would be shorter for the Trustee and therefore the fees should be less than the normal 3 year fee.

Creditors, I'm sure, would also appreciate being paid quicker!

Mark

In answer to how I know so much:

I have nearly 20 years experience in the Welfare Rights and Money Advice fields both in England and Scotland.

Training has been conducted at Birmingham Settlement in the early 90s followed by significant training with Money Advice Scotland since mid to late 90s.

Qualifcations: HNC in Welfare rights and Money Advice, Yellow Route Trainer with Money Advice Scotland (other initiatives have superceded this in latter years).

Currently act as a Treasurer and Board Member for a Citizen's Advice Bureau.

Hope this helps and gives some support to the information I am posting.

Hello grant40k,

In terms of your original post several months ago we, at the support team, spent some time thinking about the questions we are most commonly asked (and the questions that commonly appear on this forum).

We then visited the three Trust Deed companies featured on this site to ask Julie, Kevin and Mark the same questions.

The results are in the interviews which you will find in the menu on the left-hand side of this page.

If you haven't seen the interviews already I hope they help as an addition to the information already provided on this thread by insolvencyboy and Mark.