Hi chezzy

Assuming there's no assets to be dealt with, all you should ever pay is the contribution x 36 months. There should be no lump sum payment unless its for an asset payment agreed at the start.

Mark

Hi again chezzy666.

What you've been told will not apply to most people. It might possibly if you owned a major asset, like a house with equity in it for example. If this was possibly the case for you it should be brought to your attention in advance.

Do you own any major assets like that?

This article will tell you more about mortgages after trust deeds:

https://www.trust-deed.co.uk/repair-your-credit-rating.html

Hi,

No I don't own any major assets like a house etc. I do have car but it's not exactly worth much. Probably costs me more to repair each year than it's worth!

Thanks will look at the link you gave me.

I also wanted to check if all my debt would be covered by my trust deed. I have a £2000(ish) over payment from child/working tax credit is this covered with a trust deed?

Thanks

Hi chezzy

Ive found that they will normally submit a claim in a Trust Deed with our cases, but they do have the option of deducting from ongoing benefit payments.

Mark

Thanks, my current payments are actually higher than they should be as it would put me in hardship so it would be better if they just gave me what I am entitled to and put the overpayment in a trust deed. Will see what happens.

Another question, is there a set minimum payment for a trust deed. Someone told me the minimum was £200 but I was quoted less than that by a company I have spoken to so far?

Thanks again for all your help.

Hi chezzy

No, there is no minimum payment as such. The level of debt will be a big factor as the trust deed needs to provide a minimum dividend payment to creditors.

Mark

Hi chezzy,

As Mark says, overpayment of tax credits would be included in a trust deed. The level of your contribution to a trust deed should be set at whatever is reasonably affordable. In reality, in order to get it accepted by enough creditors at the start you need to be able to afford sufficient to meet their criteria. This will largely depend upon the total debt amount, but it is often possible to set up trust deeds at less than £200pm