Protected Trust Deed / Debt Arrangement scheme advice

moldavite14

Hi

After weeks of sleepless nights I am finally admitting defeat that I can no longer afford to pay my debts.  

I had a look at stepchange and their advice came back at either a trust deed or debt arrangement scheme (im
in Scotland)

I owe £50k in total though £20K of this is a car pcp which runs until March 2029.

i understand I can keep my car but will have to hand it back at the end of the deal and that’s fine.

What happens to my bank accounts? I have a few.  The one that is going to be closed is my main - I have 4 credit cards that will be included in my debt.  I have already moved my salary and other direct debits to another account I hold with nationwide  - I have 2 accounts with them a basic and a current - no overdraft.  I also have a credit card with £0 balance.

What happens to any creditors I owe £0 to?  Do these accounts get closed? 

I’ve also a Monzo account with an overdraft of £500 though I never use this and never have.  I like Monzo for their pots.  Would I have to close this account down? 

The trust deed is for 4 years and the DAS is over 9 years.  At yearly reviews what is needed? Is it just bank statements for the year or 3 months worth? A p60? 

Do either of these schemes take every penny of surplus at the end of the month? Just scared I’m not going to have enough if an emergency happened.

i have not missed a payment yet but I know with 0% offers finishing soon it is inevitable.  Am I best building up a small emergency fund before applying for my chosen debt plan? 

Does the trust deed stay on my file for 6 years after last payment? Does the debt arrangement scheme stay on file for 6 years after last payment?

sorry for all the questions.  I’m very scared an and also annoyed at myself for getting into this position! 

ManyWays

Can I start with some questions, rather than answering yours?

What do Stepchange say you will pay a month in the PTD and is it the same in a DAS? 

Do you need this car on PCP? If you do, how will you manage without it?

Are you buying or renting and may you need to move in the next few years?

moldavite14

Rent from LA so no plans to move anytime soon.  

 Need a car to get to work, visit family and get to shops etc.  May look for a job closer to home or from home nearer the end of the contract.  Eldest will be driving by then so if need be I could use their car. 

 Not entitled to benefits other than child benefit as im married. OH is aware of situation and fully supports me - would help me if they could. 

PTD is around £100 less per month than the DAS

ManyWays

I wonder why the PTD is a less a month than the DAS. 

sourcrates

Although not an exact match, a Protected trust deed is similar to an IVA, and a DAS is similar to a debt management plan, but in Scotland its regulated rather than being informal.

As they are both formal arrangements, if it were me, I`d take the one that ended the soonest, can`t add more than that really, that appears to be the only difference I can see.

ManyWays

DAS is a formal arrangement with your creditors but NOT a form of insolvency: there is no write off at the end (although a small one sometimes happens, creditors dont have to approve it, it does not show on your credit record (but the defaulted debts obviously do) etc

sourcrates

ManyWays said:

DAS is a formal arrangement with your creditors but NOT a form of insolvency: there is no write off at the end (although a small one sometimes happens, creditors dont have to approve it, it does not show on your credit record (but the defaulted debts obviously do) etc

Meant formal arrangement.