Hello tanyadm and welcome to the Trust Deed forum.

The difference between the ?ú5760 that you are paying in and the 13% dividend (which on debts of ?ú15000 is around ?ú1950) is the fees that the insolvency practitioner is charging for setting up and administering the Trust Deed.

It looks as though their fees are around ?ú3800.

I hope this is clear but let us know if you'd like further explanation.

quote:

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Originally posted by Trust-Deed Assistant

Hello tanyadm and welcome to the Trust Deed forum.

It looks as though their fees are around ?ú3800.

I hope this is clear but let us know if you'd like further explanation.

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Thanks for the clarification! That sounds like a lot - is that a standard sort of fee for administering a trust deed? I'm definitely in the wrong line of work!

t

It's an interesting point tanyadm. We have seen some cases on the Trust Deed forum where it would seem excessive fees are being charged and where that has led to issues that could affect the person trying to resolve their debt worries.

Comparatively these fee levels for your Trust Deed seem reasonable though it's hard to comment in too much detail as the fees will in part be set according to the perceived complexity of your case. For that reason it's not really possible to comment on what a standard Trust Deed fee would be.

The most important factor is whether your creditors believe the fees to be reasonable as it is money that would have potentially gone to them otherwise. So long as they think the fees are reasonable, and that your case has been properly and fairly presented, your Trust Deed should become protected and you'll be well on your way to putting the debts behind you.

Being a formal insolvency arrangement, a trust deed does require a lot of skilled professional work, spread intermittently over a 3-year period. There are also certain fixed outlays that have to be paid in all cases in order to comply with legislation etc.

Creditors are aware of this and bear this in mind when assessing proposals. The amount your trustee is setting aside for costs is certainly well within the normal range, so you shouldn't worry unduly.