Hi

I spoke to trustee this morning and the Clydesdale Bank have objected because of the trustees fees. Straight away said he would send info about sequestration out. I asked if he could reduce fees. He says he can't reduce them. I've asked him to go back to Clydesdale Bank, to see is TD was extended by a year and my contributions increased from '£157 to £230, if they would accept it. How quickly is he likely to have a response?

Thanks

Hi J101rd.

Are you sure that's affordable for you?

How much are the fees out of curiosity?

From the figures gives - 13k debt and a £230 pm payment - wouldn't a DAS be the best option?

Hard to disagree with that, Jinty - as long as £230pm is affordable of course.

Hi J101rd,

I think you should take a couple of days to think things over before committing to any change in payments and term.

If you would like to try and proceed with a Trust Deed then you are increasing both your payment and term that you first signed into. You need to be confident that this is affordable.

As JintyMcSkinty points out, you could also consider a DAS. Paying £230 per month in debts of £13,000 would mean that it would take approximately 57 payments. This is making the assumption that you use the free advice sector to set this up for you. I'd like to hope that this was an option that was discussed with you.

Sequestration will be based on what you can reasonably afford to pay per month for 36 months. If you can afford £157 per month that's what you pay. It's nowhere near as bad as people think.

You have a number of options available to you and this all should really have been explained to you at the outset. I'm surprised that the Trust Deed proceeded without any warning or discussion about the increased possibility of your creditors objecting to the proposal.

If you have decided it's the Trust Deed then your Trustee should hear back within a couple of hours at the most regarding the revised proposal. Normally it's a quick phone call to discuss the objection with the creditor and then an email to follow the call up confirming things in writing.

TDA, my contributions over the three years would total £6152.00 (including £500 equity release fee). Fees for trustee, and a fact finding fee which I assume was the intermediary, total £4675.30.

I asked about a DAS today and trustee said that was an option, that creditors still might not agree to it, and that their costs to date, approx. £1000, would need to be added to my existing debt.

David, when you talk about the free advice sector do you mean citizens advice?

Hi J101rd

If GT were acting for the main creditors, the Trustee should have known about the acceptance criteria, rather than go through the whole process knowing they would not agree!

Mark

Hi Mark.

Yeah, I'm regretting starting the whole thing. It's hanging over me and I want to find the best solution for me as quick as possible so I can stop worrying and questioning everything, feel as if I'm going in circles.

Can a DAS be objected to by creditors? Can a DAS be arranged though citizens advice?

Hi J101rd

Yes, DAS can be objected to, but I can't see any reason why. The CAB could do this for you.

The trust deed should have been proposed based on acceptable criteria to the creditors. If your trustee reduced fees they would overturn the objection. If the trustee discharges himself, then you could look at another trustee to make the proposal.

Mark

Sorry I meant to say that even sequestration is an option.

Mark

Hi J101rd,

The Citizens Advice or your local money advice team in your council can set a DAS up for you free of charge. An IP can also set this up but will charge you a fee and this can vary from firm to firm the same as with a Trust Deed.

I think it is unlikely that a DAS proposal based on the figures above would be rejected by creditors. Even if there are any objections your creditors may well be forced to comply by the DAS Administrator if they judge that your proposals are "fair and reasonable".

It seems like a very poor show to me that the firm you dealt with would be seeking £1000 from you for the work they did when they seem to have been no use to you at all. If that is the route they take then maybe it is worth considering letting people on here know who they are - this is surely the kind of information that people need to know about when they are considering where to go for advice and assistance.

If the trustee agrees to resign how long would this take?

quote:

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Originally posted by Kevin Mapstone

I think it is unlikely that a DAS proposal based on the figures above would be rejected by creditors. Even if there are any objections your creditors may well be forced to comply by the DAS Administrator if they judge that your proposals are "fair and reasonable".

It seems like a very poor show to me that the firm you dealt with would be seeking £1000 from you for the work they did when they seem to have been no use to you at all. If that is the route they take then maybe it is worth considering letting people on here know who they are - this is surely the kind of information that people need to know about when they are considering where to go for advice and assistance.

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I agree with the naming the company concerned.
You never know, it may be that the do monitor the site and will come on and either explain their position or, ideally, reassess that position.

Hi J101rd.

It shouldn't take long at all if they get on with it.