Hi stephencarlin

Unfortunately it's impossible to answer as it will depend on many factors. Income and expenditure and achieving a figure creditors will accept are probably the main 2.

For instance, if you earn £5k a month and your expenditure is £3k. That equals a high contribution. On the flip side you earn £1000 per month and your expenditure is £800 equals a far lesser contribution.

With no additional information, I would have thought ( and don't hold me to it) somewhere in the £230+ region to get it to work.

Mark

Hi stephencarlin,

I would echo what Mark said regarding the way a contribution is calculated. A through income and expenditure should be carried out in order to ensure that any contribution that is set is affordable over the 3 years. From this it can be determined if the surplus money left over will be sufficient for creditors to accept this as a contribution.

Some creditors have a different acceptance criteria than others which can sometimes mean that a payment would have to be higher to be accepted. This can sometimes mean some tight budgeting to ensure that the payment is affordable.

Without any further information i.e. who your creditors are etc i would agree with Marks suggestion that payment in the region of £230 per month may be acceptable to creditors.

How can you guys suggest that figure without an income and expenditure figure? Given the deed is based on affordability is it sensible to offer possible figures at this time?(I know you have both stated its hard to say without figures but you have both gone on to suggest a fairly low figure that may work for creditors).

Has bankruptcy been considered as an option?

Paul

Plastic I think all they are saying is that £230 is the minimum monthly payment that would be required with total debts of £34k for creditors to receive a sufficient dividend that enables the trust deed to be accepted.

I don't see any suggestion that they would work towards that figure. They have both clearly indicated that a full income and expenditure statement needs to be completed before the level of contribution can be determined.

Hi aber87

That is correct. Both posts state quite clearly that it is not possible to produce a figure without all of the information. The figures provided are based on the minimum amount required over a 36 month period based on criteria provided by creditors.

Mark

Hi Paul,

I think aber87 and Mark have hit the nail on the head with regards to the contribution amount we both suggested.

Stephencarlin is looking for an idea of what kind of payment would be required in a Trust Deed. In our opinion we have advised him what we think would be the minimum amount that creditors would accept having a debt of his level. This allows stephencarlin to look at his budget and decide if he can afford a payment for a Trust Deed over 36 months.

Before proceeding with any option, either a Trust Deed, Sequestration or a DAS we would work through a thorough income and expenditure to determine what options were available.

I can see where Paul is coming from here, though Mark and David did clearly specify that any payment would be based upon affordability.

The usual advice process (which is a little different to answering questions on a forum) is to investigate circumstances first and then define which options are available from that information.

Starting the other way around, by identifying an amount needed to make a trust deed work, can be a little dangerous. It could lead someone to cut their expenditure allowances too tight to be manageable, or to expect that their contribution will be lower than it will actually need to be in reality.

That's not intended to be any criticism of the information provided on this thread though as it was qualified in the comments made.

Hi people,

this is my first post and im looking at same scenario as stephencarlin.

im about to get some debt through a voluntary surrender of my property where without doubt there will be a shortfall of between 35k and 40k.

my income is 1200 a month every month and my outgoings are roughly around 800 - 950 ranging month to month.

based on these figures stated above could any1 give me an example if a) i would be accepted into a trust deed
b) what would my repayment be roughly?

any advice would be much appreciated

thanks

Hi robertmcg

Like the previous post, its difficult to comment without a full review to see what options are available.

If there are no other assets and your surplus is in the £250 region then a trust deed may work. DAS may also be an option with a repayment period of approximately 12 years.

As always, its best to sit down with someone and look at all the options and the pros and cons of each.

Mark

hi mark,

thank you for your reply, i understand that you would need all facts and figures to get an accurate figure, ive worked out that my surplus would b between 200 and 220 max?

what is DAS ?

as i have stated my house has not sold yet and im looking into this as a pre emptive strike as they say

if i was to go bankrupt is it still 7 years before you can get credit? and also would i ever get accepted for a mortgage again ?

any replies would be helpful

thanks

Welcome to the forum robertmcg.

DAS is the Debt Arrangement Scheme. You can read more about it at:

https://www.trust-deed.co.uk/debt-arrangement-scheme.html

The fact that your home hasn't been surrendered yet isn't necessarily an impediment to starting a trust deed if you choose to.

All of these formal debt solutions will be visible on your credit file for six years.

I'm afraid it's impossible to answer the mortgage question as there are so many other important factors involved. I wouldn't necessarily assume that bankruptcy would cause much more serious difficulty in this respect than protected trust deeds.

I'd suggest working through your income and expenditure with an adviser. They'll be mindful of creditor guidelines when doing the calculation which will open opportunities to explore the options that are definitely open to you.

Hi robertmcg and welcome to the forum,

You have done the right thing in taking advice early on regarding the repossession of your property and what to do in relation to the potential shortfall.

Are you still living in your property at the moment? I'm wondering if your disposable income is calculated on your current expenditure then this could change when you need to relocate into rented accommodation.