Welcome to the forum Shona88.

There should be no issue with using your overdraft if it has only been used for regular types of household spending.

Once you sign the trust deed you become committed. Up until that point you can withdraw from the process if you choose to.

Thank you! Well I moved the money into my partners account while I wait for my new pin and bank card to come for the new bank account, as I have a few bills to pay and was worried Rbs would freeze my account since I’m not sure when they become aware of the TD happening. I have electronically signed a few things but they are sending a courier tomorrow to deliver the physical paperwork for me to sign and send back. I don’t think I am going to back out, but when I read the nitty gritty about the potential of it not becoming protected and therefor risking losing the house /being made bankrupt that scares the life out of me and makes me not want to sign.

Also I have 13000 in debt to creditors, them being next, MBNA, RBS, Argos and Hitachi. Do you know of any of those commonly reject the TD . Terrified it doesn’t get protected!!

Hi Shona88.

The major creditors have acceptance criteria that trustees are made aware of.

A good trustee should warn you in advance if your proposals fall outside of those criteria and there is an enhanced risk that protection will not be achieved.

What's the scenario with your home? Is there equity in it? Has an agreement been made about how any equity will be dealt with?

Hi shona88,

Well done first of all reaching out for help and advice.

What’s making you doubt things and thinking of pulling out? Is it just the fear of the Trust Deed not being accepted and impact on your assets?

It’s always a good idea to speak with a couple of advisors from different firms about your options. A good experienced and knowledgeable advisor should be able to put a lot of your worries and fears at ease quite quickly on a call. If someone happens to deals with a call centre rather than a professional advisor sometimes this aspect can be lost a little.

As TDA has advised lenders have criteria that they set out which Trustees need to work with. This is why a good experienced advisor can advise you the likelihood of your proposal being accepted or not. Things lenders look for is a minimum payment per month, that your income and expenditure is reasonable and not excessive and the fees that the Trustee charges are in line with what they feel is acceptable. Also how any of your assets will be dealt with.

When it comes to setting up a Trust Deed if you have assets such as a home or car you need to be absolutely clear how your Trust Deed will work. Don’t rush things. Take your time, ask lots of questions and if need be ask for a meeting with the actual advisor who will handle your case rather than a courier coming to your house. That feels a little rushed to me.

How much do you owe to Hitachi? Reason I ask is sometimes they can be problematic for Trust Deed proposals if they have 1/3 of your total debt. They don’t have a set criteria but will review each proposal that is made on an individual basis.

Hitachi I owe £3000 to, of my total 13000 debt. I have asked about the likeliness of the protection being rejected, and they have said looking at my creditors he can’t see there being a problem but obv for obvious reasons he wouldn’t be able to say for 100% just incase it were to happen, I’m dealing with personal debt solutions and have heard nothing but good things from their trust pilot thing, all the reviews are great and they have been great too, it’s just when you actually read the contract before signing it all sounds so scary so it worries me a bit.
I have no equity in the house at the moment as I’ve only been in it one year , but obv after 4 years that will change. If there wasn’t a possibility of the protection being rejected I’d have no doubts what so ever. As I really don’t want to go bankrupt and I’d be worried after 4 years that the creditors would make me sell my house.

Hi,

Have you double checked with the company you are using if they will handle your Trust Deed themselves or if they will pass it to someone else to actually handle?

I’d always suggest speaking the advisor and firm who will handle your case from start to finish. That way you can ensure that the advisor has hands on experience of actually dealing with the lenders and making proposals.

You want to ensure that the company you are dealing with have carried out a valuation of your house and you have provided a settlement for your mortgage. This is the only way to confirm the equity. Once it’s confirmed it should then be set out in writing that there is no equity and that they will not look to revalue the house during the Trust Deed providing you co-operate and successfully complete it.

Hi Shona88

As Swandog says, they should have carried out a valuation of your property and asked for a current redemption figure from you in order to work out the equity position. They cannot go back and revalue your property in future as long as you stick to the terms of your agreement with them.

Regarding your overdraft, if you usually use this facility every month anyway then there should be no problem whatsoever with using those funds prior to entering a Trust Deed.

Signing a Trust deed is a big step, especially if you own your home, and you should feel perfectly fine about walking away from it, or delaying signing to get a second opinion elsewhere first.

Hi, yeh I gave my redemption statement and it was confirmed I have no equity at the moment. And it is personal debt support who handle it from start to finish, I will confirm this but they’ve said I can ask questions throughout and it’ll be them who send me the annual I&E forms etc and them that I’ve to inform of any extra income etc.
I do think this is the best option for me, if I don’t do this then I will have to continue paying over £400 a month in minimum payments and it leaves me so skint that it’s made me a complete anxious mess, every time my bank texts me telling me I’ve went over my overdraft I get anxiety it’s just not worth it. And I totally know it’s my own doing, not looking for an easy way out at all. But I’d be paying £400 in min payments for the next 4 years atleast too so I deffo think a trust deed is the better option and it’ll also help make me learn my lesson and stay away from creditors, stop living beyond my means!
It’s just a big risk, with the potential for them to reject the protection, I’m hopeful they won’t and everything will be fine, and I’ll have a positive experience. It’s not an ideal situation to be in at all but I really need help x

Hi Shona88,

I hadn’t heard of the company you mention before so had a look into them. According to companies house they were incorporated / formed in June 2018 and I looked on the Register of Insolvencies to see how many people they have put onto Trust Deeds since then and it’s been 22 people. The Register or Insolvencies is a register of everyone who has signed a Trust Deed or Sequestration and you can check how many people w company have dealt with.

That suggests to me that they haven’t actually administered a Trust Deed for the full 4 year duration or dealt with a lot and appear to be a very new company. That’s not nessasarily a bad thing and to handle Insolvency cases you need to be qualified ie pass exams etc and then meet the criteria set out by an authorising body.

For me I look for someone who has years and years of experience and has handled thousands of cases. That way you know they have the experience of proposing Trust Deeds that lenders will accept and handling cases from start to finish.

Just make sure everything is confirmed in writing regarding your house, your payments and the duration of the Trust Deed. Also things like what happens if there is an increase in income or a decrease, what happens with any inheritances etc or bonuses at work. All important things to cover. Also ask them how quickly they will discharge you at the end as this is vital. Until you are discharged from the Trust Deed if you win the lottery or inherit an asset this can be taken into th Trust Deed. Some firms can take a while to do this and it’s a topic that comes up in the forum. Get them to confirm this in writing as if they haven’t actually dealt with a case for the full 4 years how will they know.

I think you are definitely making the right choice in doing a Trust Deed and it’s a very fair way of paying back what you can afford and what the lenders are happy to accept. You will feel a whole lot better once it’s hopefully accepted and up and running.

I just wanted to give you some things to think about. As I’ve ssid no harm seeking a second opinion.

I wonder whether it might be possible to give you a bit more reassurance regarding the chances of your Trust Deed failing to get protected, as this is obviously something that is worrying you. Having dealt with Trust Deed proposals for many years, we have a good idea as to what would normally be acceptable.

How much are they saying you will need to pay each month, if you don't mind me asking, Shona88?

It actually may well come down to the level of fees being projected by your chosen Trustee, so it would be useful to know that if you can see it on the paperwork you have been sent so far?

So they have worked out that my disposable income at the moment is £119 so that is what I’ll be paying, I am on maternity leave so my income will go up to £900 when I go back which I am aware that means my payments will go up.
I don’t have in writing a payment plan as yet, I have been on the forum this morning and have emailed my trustee to ask the questions I have been advised to ask so hopefully he will get back to me soon.
I am due to sign the paper work this morning, via courier who I have been advised will be happy to call the trustee with questions etc if I have them before signing .
I do just need reassurance of the likliness of it being rejected as is scares the life out me !

Hi Shona88,

How much will your income increase by (from now to then) when you return to work?

When will you return to work do you expect?

I go back in April, I get £650 maternity pay plus £83 child benefit. I will get £900 plus £83 child benefit when I return x

So the courier is coming out and you are expected to read and sign the paperwork while they wait?

You are meant to get adequate "time to think" before signing anything according to the good practice guidelines insolvency practitioners must follow - if the above is correct then I can't see how this arrangement does that. All information should be provided in writing for you to read properly and consider before signing - a couple of days is really what is expected.

On top of that, they really should be giving you a clearer picture of what to expect when you go back to work. If you are £250pm better off then they may ask you for all of this. Or will you have childcare costs to contend with too?

It all sounds just a bit too rushed in my opinion. Please don't be afraid to take the paperwork from the courier and advise you will sign and return it once you have had a chance to read through.