Hi utteridiot and welcome to the trust deed forum.

It's good to read that everything has worked so efficiently thus far.

Perhaps the sheer efficiency and speed is leaving you a little nervous now? That's understandable, especially as there may be someone on the way soon to collect the paperwork soon as well.

If you're nervous simply inform the trust deed company that you need to draw a halt to proceedings while you take the time to be sure that this (a trust deed) is what you want. Don't sign anything until you are 100% certain.

If you do decide to sign the trust deed itself there is little in the way of "going back" available to you.

Is there anything in particular about your circumstances that is making you nervous that their may be a shock in store for you later?

It might be worth having a really good read around this forum as you'll find lots of personal experience from people who are sure they made the right decision, people who are questionning whether they did, and also from some people that regret the decision they made. This might be helpful in alerting you to many of the potential positives and negatives others have experienced in connection to their trust deeds which you can then apply to your own scenario.

Thank you for the quick response. I have no idea what i'm worrying about in particular. I think everything just happening so fast and at the same time i am having to tell the truth to those close to me which is even more difficult. I think i will continue to read other's experiences on here, which so far has been quite informative and I like that it has different view points and doesn't attempt to hide anyones negative views. This gives us all a chance to consider all options and possibilities.

Hi again utteridiot (finding it difficult to type that!).

While a trust deed is perfect for many people, it's a big decision and not to be rushed into.

Please let us know if you have any specific questions after you have had the chance to have a good read around the forum.

Hi utteridiot,the hardest bit for me was actually picking up the phone in the first place,and i i thought it would be judgemental how did you get in this mess which it was not ,my trust deed was set up quite quickly and like you i was a bit surprised as i thought would take months to do,and if honest i would say felt a bit like you but for me it was the best decision i ever made,but that is not to say it would be the right one for anyone else ,i have had no problems so far with company i am with they have been excellent.i hope everything works out for you

Hi Utteridiot (I think we all feel a bit like that in this sort of position)
I'm 3 months into my TD and my advice would be to take your time and for preference have face to face meetings with two or three advisers. Spend some time with someone who will go through all the what-ifs and maybe's.
Tell them to hold-off until you're ready.
Best wishes
Snowball

Hi Utteridiot [:o)]

I was in the same position as you regards the contact with payplan, who then got in touch with KPMG. KPMG had me in at their office within days with all my details. That was 3 years ago and I do remember everything happened very quickly, and within the stipulated time the Trust Deed became protected. I've still 1 small payment to make but I am so glad I made the decision!

The point of my post is that KPMG have been great with me regards difficult personal circumstances, very professional and very approachable. I would recommend !

JS

I am glad to hear that. I just have one query now I think after reading some of the boards here. When I questioned the fees for KPMG I was told not to worry about that as it is something that is agreed with the creditors and not something I will be billed for. Does this sound right?

That's an interesting question utteridiot, and there are different ways of looking at it.

Our standpoint is that you should take a significant interest in the proposed fee level of any trust deed company before you commit to anything.

The reality is that these are the fees that you are paying if you instruct any trust deed company to act for you. They may be drawn from a fund that otherwise would be paid to your creditors, but it is you paying the fees.

If any trust deed provider sets fees at a level that the creditors consider to be too high it could (and sometimnes does) lead to them objecting to a trust deed and therefore might prevent your trust deed from becoming protected.

In certain instances we've heard from visitors that they have been asked to enter into four and even five year trust deeds. There can be occasions where this is necessary to ensure that creditors will receive an acceptable amount of their debt back. We have also seen cases where the additional period (over and above the usual three years) seems designed to help fund higher than average fee levels.

My trust deed will be ?ú200 per month over 3 and a half years. I had the option of that or ?ú215 over 3 years which I would have struggled to afford despite it being only ?ú15 a month more (i know it does not sound a lot). The forms are being sent out to me today so I will read it all thoroughly to see what they say regarding any fees before I sign anything. Thank you again for the quick response, it really is appreciated

What's your overall debt total utteridiot?

We'll be able to estimate the fees from that information (along with the details you've already given to us).

The overall debt is at ?ú19k 🙁

Hi Utteridiot

Looks like the extension is to meet fees, not have it accepted

Mark

Hi Mark,
If that is the case does that mean that it is more likely to be accepted by creditors in your experience. I am very worried as it is mostly with payday loan companies whom i have read are not very understanding and i feel they may attempt to block a trust deed. If the fees are the 6 month extension then that would mean the 200 per month goes mainly to creditors otherwise i presume

Hi utteridiot.

The guidance to trust deed companies is that the creditors must be expected to receive a dividend of at least 10p in the pound after the fees/outlays of the Trustee have been taken into account.

Therefore an extension of the usual 36 month period (in your case to 42 months) must be to either:

1 - Make up the total paid into the trust deed to equal that 10p in the pound plus the fees/outlays of the Trustee or/
2 - Fund a higher than minimum dividend to the creditors.

My guess would be that the first explanation is more likely. You should be able to see this in the paperwork you receive.

If it is the first explanation it may be that the creditors receive 10p in the pound (?ú1900) and the remainder (?ú6500) covers the fees of the Trustee plus VAT and their outlays. This seems high for a straightforward case if it is the case.

The three companies featured in this forum have informed us that their typical fees vary from ?ú2500 to ?ú4500 (and that VAT and outlays would be added to this). I'm sure most trust deed providers would state similar figures.

With a lower fee level you can therefore see that the 10p dividend (or more) to creditors could potentially be achieved over 36 months of a ?ú200 payment rather than 42.

Your paperwork will hopefully reveal what is actually proposed in terms of fees to handle your case, and what the proposed dividend for creditors is.