Trust Deed | Frequently Asked Questions

How can I set up a Trust Deed?

A Trust Deed can be set up by a licensed Insolvency Practitioner, who will assess your financial situation and provide professional advice for your particular situation. All the information about a how a Trust Deed will affect you must, by law, be addressed prior to entering into a Trust Deed so you will have no doubts about whether this is the best option or not for you.

Do I have to pay a fee?

No. The monthly contributions that you make are put into an account and we are paid from these funds. We agree a fee with your creditors when the paperwork is initially drawn up and they pay us for supervising the Trust Deed. At no stage will you receive a bill from us.

How long does it take to set up a Trust Deed?

It usually takes between 4-6 weeks to set up a Trust Deed.

How are my payments calculated?

An Income & Expenditure will be devised to calculate how much Disposable Income you have left over after you payt all your monthly commitments relating to normal cost of living. The minimum contribution in a Trust Deed is usually £200 per month. We will look at your Income & Expenditure and assess if a Trust Deed is a realistic option for you. Payments will then agreed with you based on what you can afford e.g. if you have £360 surplus each month, you may be asked to contribute £300-325 in a Trust Deed.

Can I finish my Trust Deed early?

The Trustee can normally accept a lump sum to complete your payment agreement at any time.

Can I arrange a meeting with you?

Yes, a meeting can be arranged at the office, at your home or at a place convenient to you if you would prefer to meet with our professionals. In some less complicated cases a telephone meeting may be sufficient.

Do I need to change my bank account?  

You will only have to change your bank account if you have debt with that particular bank or an affiliated bank

This should not be too difficult as you only require an account that allows you to have access to your money and allows you to set up a direct debit to pay bills etc. We can provide you with a list of suitable accounts.

Will my employers find out about the Trust Deed?

We will never notify or discuss your personal circumstances with your employers. The only way in which they may find out is in the event that you may have a debt to your employer and therefore they must receive a copy of the Trust Deed.

Do I have to tell my partner?

The Trust Deed will remain confidential to you. However, if there are any jointly owned assets or joint debts then the Trust Deed will affect them, it is always recommended that you inform your partner as it is likely that they will inevitably find out in these circumstances.

Will the Trust Deed affect my credit rating?

You should expect that your credit rating would be adversely affected by going into a Trust Deed but if you are finding it difficult to meet your minimum monthly credit commitments then it is more than likely inevitable that you will start to default on payments and in turn this will also affect your credit rating. The difference however is that if you have signed a Trust Deed then you can be confident that as long as you make your monthly payments you will be debt free at the end of the arrangement and can make a fresh start. Remember that your credit rating is renewed every 6 years anyway.

Can I keep my car?

If your car is required for travel to work purposes then you will be allowed to keep the car. It will always be estimated that you will not have to address equity in the car if it is valued at approximately £1000 at the end of the Trust Deed. If however your car is valued over this amount then you will be expected to make extra contributions to cover this or pay a lump sum.

If your car is on HP then this will usually be included in your Income & Expenditure (providing that the contributions are not excessive).

Can my partner be pursued for a joint debt?

If your partner is not signing a Trust Deed then they will be pursued for the remainder of the joint debt. Basically if the Trust Deed was to pay a dividend of 20p in £ (1/5 of the debt) then your partner will still be liable for the remaining 80% of this debt. Allowances will have to be made for this in your joint Income & Expenditure.

What happens if I lose my job or become ill?

You will need to notify Trustee of any change in circumstances anyway. If you have been made redundant we will require details relating to this and severance payments. If it is only temporary then we can suspend payments until you resume work again.