Hi dave78

It is difficult to fully assess, as it depend on a number of factors. How much debt is in each name, what can yo afford to pay etc.

At ?ú40k, I think a formal option looks a better proposal. Either a DAS or Trust Deed may provide a solution.

Mark

Hello dave78

Thank you for contacting the forum.

can you tell me if the debts are joint or sole debts?

TDA

Hi there.
At present the debts in my name = ?ú18000 debts in wifes name = ?ú1500 and joint debts = ?ú20000.

Hi dave78

Based on the above, you have debts of ?ú38k and your wife has ?ú21,500. I realise part of the figures are joint.

You need to work out what you can realistically afford per month and then look at the options. The DAS scheme requires repayment in full over a longer period. The Trust Deed allows for debt write off. Both will freeze interest and charges.

Mark

Hi mark, thanks for your quick reply.
Having looked at our income and expenditure I think we would only be able to afford between 200-300 per month. Entering a DAS would mean paying this for the next 13 years roughly - would the creditors agree to payments over this length of time? If entering a trust deed would they be willing to write off the remaining debt after 3 years as only a quarter of what we owe would have been paid off!

Hi Dave78

From the information you have given it looks like you do not have enough money for you both to do a Trust Deed, you could look at the Debt Arrangement Scheme which will freeze interest and fees. You can find information on this on the left under alternative solutions.

Hi TDA. To enter a trust deed is there a certain percentage of your debts you need to pay off each month and if so how much is this?
And in the DAS i take it reviews take place every 6/12 months and you can increase your payments if you have more money available, lowering your repayment time?!

In a payment plan through DAS you can pay your debts over a longer period of time and you can pay any amount of money or over a reasonable period of time. If your circumstances change for the worse or for the better the payment plan can be varied to take this change into account.

i am sure that Mark will along shortly to answer the trust deed question

TDA

Hi Both

in the Trust Deed, creditors would expect a minimum dividend. The surplus suggests ?ú100-?ú150 per month each which creditors would not accept. Realistically, this would need to be between ?ú200-?ú250 each.

If you are looking at debts of approx ?ú40k, then DAS would be 11-12 years. This Period could be reduced if more money was paid in through that period.

Hope this helps

Mark

Thanks both very much for your help and advice. Will need to have an indepth look at our situation and see what the best way forward is.
Regards, David

The other option may be sequestration - or maybe a trust deed for one of you and sequestration for the other. If there is negative equity in your house then it shouldn't be at risk.

However, someone would need to take you to court first before this option is open to you. And of course, I would recommend you seek professional advice from a money adviser/insolvency practitioner before proceeding down this route.

Had two meetings with an insolvency practitioner last week and after re-evaluating our income/expenditure my wife and myself both signed seperate trust deeds. Even though we have the 5 week wait to see if everything is ok I feel like a massive weight has already been lifted from my shoulders!

Hello dave78,

A lot of people feel a huge sense of relief once they decide upon a course of action to deal with problem debt; I'm really pleased to hear that this is the case for you.

Good luck with everything and please keep us updated.