Speaking to a professional debt advisor should help you find out what your options are, and whether or not a Trust Deed is the most suitable approach in your case. If it is, it will require the expertise of an Insolvency Practitioner (IP) to set one up.
The IP (or a debt advisor on their behalf) will talk you through your financial situation, working out how much unsecured debt you owe your lenders overall, and how much you can reasonably afford to repay per month. The IP will provide all this information in a Trust Deed proposal, which will then be sent to your lenders for review. To get a good picture of your finances, you’ll need to provide:
- Wage slips and bank statements from the last three months
- Documents confirming your finance agreements – including credit cards, hire purchase, loans, etc
- If you’re a homeowner, copies of your mortgage statements
- Details of all your debts, including estimates of amounts owed, names of your lenders and account reference numbers
- Any recent statements from your lenders
Unless there are objections from more than 50% of your unsecured lenders (or those who 'own' more than a third of your debt), your Trust Deed will become a Protected Trust Deed. This means that both you and your lenders must abide by its terms until it successfully ends.