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Protected Trust Deed Fees

Your Trust Deed usually lasts for three years and you will pay a flat monthly fee during that time.

To give you an idea of typical Trust Deed fees, an example is shown below:

• Total repaid by the individual  £7,200
• Total unsecured debt written off at completion £15,800 (69%)
• Typical monthly payments (x36 months) £200
• Fee element included in monthly payment (x36 months) £110
• Trustee disbursements £150

This example is based on a typical Trust Deed client, who has approximately £23,000 of unsecured debts, who completes a three-year Trust Deed and who has no equity in any property. The fees shown do not include VAT.

Note that our fees do not affect the amount you actually pay each month. This is because all fees are taken out of your regular monthly payments, which are assessed only on the value of your assets and on what you can afford to pay each month after essential spending such as rent/mortgage, food, utilities etc.

The fee meets all of the costs of setting up your Trust Deed, and it also pays for all of the supervision and support needed while the Trust Deed is in progress. In particular:

• a Relationship Manager will oversee your Trust Deed as it continues, and you can ask this person for help and advice as you need it.
• your IP will also be available if needed – so for example if your income changes, or if you have a sudden increase in essential bills, then your IP might be able to arrange a Trust Deed variation. This is a legally binding change to the terms of your Trust Deed, and it takes new circumstances into account.

Your actual monthly fee will be decided as part of the Trust Deed proposal drawn up by your IP before your Trust Deed starts. This proposal sets down all of the proposed terms of your Trust Deed, and it will become protected by law unless a certain number of your creditors object to what it says.

All of the monthly payments you make are stored in a “creditors’ pot”. The flat fee is taken out of this pot first, and then all of your creditors receive their payments from what is left. Exactly when they receive their payment can vary.

Making your monthly payments is essential. If you stop payments, your Trust Deed could fail and you would then have to pay the remaining balance and all of the costs already incurred.

However, a short ‘break’ from payments can sometimes be arranged. This is possible if you are facing short-term problems which substantially cut your disposable income (e.g. a sudden and unexpected large bill).