Any initial advice that you receive about Trust Deeds from Wilmott Turner Financial Services (WTFS) either on the telephone, via e-mail or from websites or debt forums owned and operated by us is given without charge.
If you then decide that a Trust Deed is right for you there are some costs that you need to understand.
You should not have to pay any fee up front to start a Trust Deed.
Be very wary of any Trust Deed company or IP asking you to pay them up front to propose a Trust deed. This is no longer the normal practise of Trust Deed companies. Most reputable companies will not charge any upfront fee and paying one will certainly not give you any additional guarantee that your Trust Deed will be successfully agreed by your creditors.
The first payment you make should be the first of your agreed Trust Deed payments once your TD is successfully in place.
Once your Trust Deed has been accepted by your creditors you will start making your normal monthly payments as agreed in the arrangement. Alternatively you might just pay a single lump sum in the case of a full and final Trust Deed. Either way as soon as you start paying into your Trust Deed your Trustee or Insolvency Practitioner (IP) will be allowed to deduct their standard fees from the payments you make.
The Trustee’s fees will include the following:
The Insolvency Practitioner who presents your Trust Deed proposal to your creditors is called the your Nominee. The work of the nominee includes agreeing your Trust Deed proposal with your creditors. This work includes:
– An initial meeting (normally face to face) to fully understand the details of your income, expenditure, assets and income
– Gathering supporting documentation and preparing your proposal document
– Liaising with creditors if necessary
– Convening the meeting of creditors, chairing the meeting and again liaising with creditors on any queries or modifications they request
The Nominee will charge a Fixed Administration Fee for this work. The amount charged varies depending on how much is paid into the Trust Deed. You do not have to pay this fee directly. It is taken from the normal payments that you make into your Trust Deed.
Trustee’s Realisation Fees
Once your Trust Deed is accepted by your creditors, your Insolvency Practitioner’s role will normally change from being the Nominee to being the Trustee. It is possible for your creditors to request a different Trustee but this is rare. The work that the Trustee must undertake includes:
– Monitoring your contributions into your Trust Deed
– receiving and adjudicating creditor claims
– Making distributions to creditors as required (normally monthly but could be quarterly or annually).
– review and realisation of assets where required
– Generally monitoring the progress of your Trust Deed in accordance with the proposals.
– Carrying out an annual review of your case (or at intervals required by your creditors) and reporting to creditors and the Accountant in Bankruptcy
– Working with you to manage any changes in your financial circumstances
The IP will charge a ‘Trustees Realisation Fee’ for supervising your Trust Deed. This fee will normally be capped by creditors at between 15%-20% of the money paid into the Trust Deed after the Nominee Fee and initial costs have been deducted. You do not have to pay these fees directly. They are taken from the normal payments that you make into your Trust Deed.
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