I currently have £40 K + of unsecured debt.I have made arrangements to pay them off .This would take about 20years!Would a Trust Deed be suitable for me ?
If so how are the fees payable and generally how does it work?
Thanks
Hi snoopy and welcome to the trust deed forum.
A trust deed might be suitable for you if you aren't prepared to take such a long time to fully repay your debts. You would also need to meet the current creditor and trust deed provider criteria for it to go ahead and be successful.
We can give you some feedback on suitability if you could let us know how much you believe you can afford to pay towards the debts each month.
We would also need to know about any significant assets that you may own (like a house, or a car worth in excess of £3000 for example).
In a trust deed you are required to pay as much as you can reasonably afford towards the debts for a period that has been agreed at the outset (which is generally three years).
Your proposal is put to your creditors by an Insolvency Practitioner (often described here as a Trustee).
Provided enough of your creditors agree to the proposal it will become a "protected trust deed" which means none of your unsecured creditors can take legal recovery action on the debts.
The fees for the trust deed are drawn from the contributions that you have made into it.
The remainder of the funds will be distributed to the creditors as a "dividend" to repay a proportion on the debts.
Any remaining debts will be written off assuming that the trust deed is completed as expected.
I hope that's a useful starting point for you.