How Are Trust Deed Fees Broken Down?
The Trustee deducts the costs of administering the Trust Deed, which are agreed with you creditors, from the monthly payments prior to distributing the funds to your creditors.
So What Do Your Get For Your Fees With Us?
The fees you pay on a Trust Deed are for the continued support you receive and financial guidance. However, to give you a greater insight, the following are some of the things covered by the fees you pay:
- Agreeing a personal monthly budget with you.
- Drafting and preparing your legally binding proposal.
- A Relationship Manager will oversee your Trust Deed and they are available to answer questions you might have. You can also speak to them about any change in your circumstances and discuss having your payment altered accordingly.
- Distributing your payments to your creditors.
- Working with your creditors on an annual basis to ensure that your Trust Deed runs smoothly.
So What Happens to Your Fees?
The costs of administering your Trust Deed will be decided as part of the Trust Deed proposal drawn up by your Insolvency Practioner (IP) before it 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.
However, it is important to remember that making your monthly payments is essential so if you stop, your Trust Deed could fail. The result of this would require you to pay the remaining balance and all costs incurred. It would also allow creditors to start contacting you again.