trust deed costs ?

authorphil

I have £40k depts to pay off, no assets, can pay £600 pm - under a trust deed but the firm wants £6k in fees built into my payments is this the
usual costs when you don t have up to date accounts and are self employed ?
I have signed the trust deed but have not sent it away as yet so any advice would be great....tnx

authorphil

bump ???:D

beanielou

trust deeds are expensive.
Have you spoken to a debt adviser ~ is a TD the best option for you?
There are other options.

JK11

authorphil wrote: »

I have £40k depts to pay off, no assets, can pay £600 pm - under a trust deed but the firm wants £6k in fees built into my payments is this the
usual costs when you don t have up to date accounts and are self employed ?
I have signed the trust deed but have not sent it away as yet so any advice would be great....tnx

Hi authorphil, in your case it sounds as though the cost of the trust deed is academic, the trustees fees are paid out of all the proceeds of the trust deed, they are not added on top for you to pay yourself. only time it makes a difference what the fees are is when it affects the payment to go to the creditors at the end of the day, but with the level of debt you have and the size of contribution you can pay, the fee doesn't look like an issue in the slightest to me.

One thing to point out - don't know who you are signing the trust deed with, but I would recommend you make sure it's one of the big, recognised firms. They are much better at spending time with you up front to make sure you are aware of all the implications, particularly when it comes to dealing with assets. Some of the smaller firms, or the ones who advertise on the telly and in newspapers, can be a little hasty at times encouraging you to sign trust deeds without giving you all the necessary information and time to decide what the best course of action for you to take is.

I suggest you speak to CCCS or Payplan, get their advice and if they agree trust deed best option for you, then take their advice about a recommended Insolvency Practitioner, rather than going by the adverts on tv or in the paper.

Lastly, can you definitely afford £600 per month? If so,great, you've got a number of options open to you. If in reality you can only afford a smaller figure, i'd get that agreed up front before returning any signed trust deed to anyone. If the company you have been speaking to are insisiting on £600 per month and you can't actually afford that much, rip up the trust deed, don't return it to them, and go on the advice on CCCS or Payplan instead.

Hope that helps.

authorphil

:T Thankyou for replying i have been down all these roads you sujested tnx.
I will be using Grant Thornton.. Edinburgh office.. unless anyone here knows better !
They are not out of the tv or news papers.
:rolleyes: Just needed a second opinion before i send forms off !
Will c if i get a reply about the above b 4 i do so ..tnx ..:T

JK11

I haven't seen anyone on here post any comments about them and I haven't any experience of them, so can't really comment about them.

What I can tell you is that my other half had a trust deed with KPMG a few years ago and she was treated extremely fairly. I can't remember how much their fees were, but I'm sure they were not as high as the figure you quoted. There have been a few other posters on MSE recently who have dealt with them and they still seem to give very good service. One poster - Kev1980 - in particular had lots of conversations with them and they seemed to be very helpful (I can't fingure out how to link to his thread, but you'll find it if you search in the forums for "Kev1980 CCCS"). Always worth a second opinion on these things.

In fact, better than that, when you say you've "gone down all these roads" - have you actually spoken to CCCS or Payplan? CCCS are based in Scotland so therefore will know the Scottish legal system really well. Payplan I have heard good things about, but i think they are based in England, so may not be as clued up as CCCS. why don't you call CCCS (0800 138 3328), speak to them to see if they recommend a trust deed or not, then go with their recommendation for who to go with if they think that's the best route. CCCS are independent and Martin Lewis highly recommends them. They will also go over a budget with you and help you find out what a realistic monthly payment is.

Hope that helps.

authorphil

:DI started with payplan , have been to cccs and cab .. was needing other folks experenice on said subject before sending it away as time is short now due to my loss of work caused by credit crunch !
I know said firm are a large concern and so far have been helpfull so i will go with them ..
Many thanks for replying to my questions !:T

JK11

Sounds good, if you've already had advice from Payplan, CCCS and CAB then I reckon you're well informed :-)

Hope all goes well and look forward to hearing once it becomes protected.