Babyd12 shop around. Its not that your buying a loan or anything, but company fees vary as do practices.

Alternatively call the national debtline, they dont do trust deeds or debt management plans, but just give good advice and its impartial.

Essentially a protected trust deed is a type of personal insolvency, where you transfer most of your assets over to your trustee (there are exceptions).He realises the value of them for the benefit of your creditors and you pay a monthly contribution if its possible. At the end, usually 3-5 years, you get most of your debts written off (there are exceptions).

Debt Management allows you to repay your debts at a reduce amount, where you can do so within a reasonable time or the value of your assets are too high for you to do a trust deed (ie you may be putting your home at risk).

But you also should look at the Debt Arrangement Scheme which is a formal type of debt management plan in Scotland and has more advantages (and some disadvantages).

Get good impartial, independent advice first.

Hello babyd12.

Speaking to a few sources of advice makes a lot of sense, and we'll try to help you as much as we can as well.

There is information about trust deeds and debt management plans on the main menu of the site. I think you should also read about the debt arrangement scheme as well which would usually have many advantages over a DMP.

If you'd like to tell us about your situation we can help more. For example, is there equity in your home, how much do your debts add up to, has any type of legal recovery action taken place?

Hi thanks very much to both of you for getting back to me. I've sent my details to the advice line so will wait to hear back from them and see what they think. I know how much i've got left on my mortgage but don't have a clue how much my house is worth. Is there anyway I can find this out without paying for it? I do know a couple of houses have been up for sale near by but they have either been taken back off the market or sold for less than they were looking for. If I was to enter anything and they wanted me to get money from equity from my property, what would happen if I wasnt able to remortgage due to back credit rating or the deposit companies are looking for these days eat into my equity for example say i've got £10000 and the deposit is £5000 plus legal fees etc.

Thanks

Be very wary of signing up to a trust deed if you have significant equity as that would need to be realised for the benefit of your creditors. With remortgaging in the current market very difficult the only way to get to the equity is to sell up,or have a 3rd party(often a family member)pay over a sum in lieu of any equity. Zoopla would give you a clue as to the value of your home.

Paul

We will always pay to get a valuation done before a trust deed is signed, to avoid any nasty surprises afterwards. This would be a pessimistic valuation and often tends to come in lower than people think, so you may find that there would not be any problem.

Thanks plasticdaft and Kevin i've just got so much going through my mind the now and do not know what to do for the best. I'll wait and speak to one of the debt advisers and see what they say and ask everything I can. Kevin I might be in touch with your company soon.

Thanks

No problem at all babyd12 - you can contact me through the button below if you wish and I'd be happy to help.

Best idea is to take your time, ask questions and find the solution that best suits you and your priorities. You shouldn't sign anything until you are fully satisfied with the answers you have been given, and there is never any harm in getting a second opinion.