It’s common for those who have signed a Trust Deed to worry if creditors will accept their plan. During the 5 week period that your creditors have to object to your Trust Deed, it is understandable that some people may find it stressful. However, as professional debt advisors, we are here to advise that there is no need to be.
Before you sign any paperwork or offer any proposal to creditors, your debt advisor will look at who your main creditors are and will quickly be able to tell if any of them are likely to object to the Trust Deed. If this is the case, they will look at another suitable option. Our debt experts will help you choose a debt solution tailored to you and your circumstances.
Creditors have different criteria. For example, some are happy with a minimum dividend of 10p back for every pound you owe and some will look at your expenditure more closely.
As professional debt advisors, it’s our role to ensure the proposal we put to your creditors meets the criteria set out and is, therefore, more likely to be accepted.
For a Trust Deed not to be accepted at least one third in value or half in numbers must object. For example, if you have 8 creditors with debts totalling £9,000 then either creditors with at least £3,000 of the overall debt or 4 or more of your creditors would have to object.
In the unlikely event that your Trust Deed is objected, that doesn’t mean there is no debt solution for you. An unprotected Trust Deed allows you to petition for your own Sequestration, which is another route into Insolvency. The only difference between this and a Trust Deed is that there are a few more restrictions under Sequestration. For example, but not limited to, you can’t act as a director of a limited company and you may not be able to do certain jobs i.e. if you work in the financial services or legal sector or if you are a Police Officer.
In both types of insolvencies, your payments remain the same and you pay for the same period of time. Creditors are dealt with in the same way and interest and charges are frozen in both.
Regardless of which route you chose, we understand you may feel a slight worry while the plan is being set up. However, it’s important to remember that once it’s up and running you will no longer have to deal with constant letters and calls demanding you pay what is owed. We deal with creditors so you don’t have to. You may also find the payment you make towards your plan is considerably less than what your monthly debt repayments are. Therefore you may find you have money left over after paying towards your debt to enjoy a social life, holidays– whatever you have had to hold back on whilst struggling with debt.
Speak to a member of our team today to take the first step towards dealing with your debt.
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