Any initial advice that you receive from Beat My Debt either on the telephone, via e-mail or on our Debt forum is given without charge.

If you decide a Trust Deed is right for you and want the help of Beat My Debt to implement this, you will not pay any up front fees or charges. Certain charges will apply once your Trust Deed is up and running. However these are deducted from the money you pay into your Trust Deed. You do not have to pay any extra into your Trust Deed to cover them.

To find out more about these charges continue reading below.

Where to start

• Ask the experts – use our Trust Deed Forum
• Call us now – speak to one of our advisors in confidence to see if a trust deed is right for you.

Take the first step to beating your debt NOW – Call us on 0800 077 6180

Trust Deed Fees

Instruction Fee

The person who sets up and manages your Trust Deed is called an 'Insolvency Practitioner' (IP). Since Insolvency Practitioners are very highly qualified and have a lot of work to do, they use people like Beat My Debt to prepare Trust Deed cases for them.

Some companies will charge an upfront instruction fee to carry out this work. However, Beat My Debt will NOT charge you any upfront fees to prepare your Trust Deed case.

How we get paid

When you make Trust Deed contributions to your creditors, they set aside some of this money to pay the Insolvency Practitioner. There are two payments made: the 'Nominee Fee', which pays the IP for proposing the Trust Deed, and the 'Supervisory Fee' which pays the IP to oversee it until it ends. The IP shares this money with the people who prepare the Trust Deed cases - that's how Beat My Debt makes money.

All Trust Deed providers get paid in this way.

Nominee Fee

The Nominee fee is the fee charged by the Insolvency Practitioner to act as Nominee when presenting your Trust Deed proposal to your creditors. This is a standard fee taken by all Insolvency Practitioners.

Note - The nominee fee is deducted from your normal monthly Trust Deed payments which have been agreed. You do not have to find any additional money to pay this fee.

The nominee fee covers the Insolvency Practitioner’s work in setting up your proposal to your creditors. This work includes: an initial meeting with you in your home, post-meeting review and confirmation of options, preparation of trust deed document for signing, signing meeting, data input of details, advertising the trust deed, circularisation of correspondence to creditors

Supervisors Fee

Each year that a Trust Deed runs, the Insolvency Practitioner must supervise the arrangement on behalf of the creditors. In return, the creditors agree that the Insolvency Practitioner will be allowed to draw a supervisors fee on an annual basis.

The supervisor’s fee covers work includes continuing correspondence with creditors and client as required, receiving and adjudicating creditor claims, review and realisation of assets where required, current status updates, statutory reporting to creditors and the Accountant in Bankruptcy, pursuing claims as required, and preparing and distributing dividend payments to creditors.

The total Nominee and Supervisors fees charged by the Trustee will depend on your individual circumstances. Your Trustee will be paid before any money is available to repay your creditors. The fees will normally range between £2500 to £4500 plus Vat.

Note: The Trustee fees are deducted from your normal monthly Trust Deed payments which have been agreed. You do not have to find any additional money to pay these fees.

Creditor Arrears / Effect on credit rating

You should understand that when you start a Trust Deed, you will stop making your normal monthly payments to your creditors. This means that your accounts will go into arrears or further into arrears. This will have a negative effect on your credit rating.

If your Trust Deed fails you will remain liable for the balance of your debt and the insolvency practitioner fees and costs incurred.

Cooling off period

Working with Beat My Debt means that you will NOT be charged any upfront fee to start the Trust Deed application process.

Once you have started the process, it will take approximated 6 weeks for your Trust Deed to be implemented. You can cancel the application process at any time during this period. However, once your Trust Deed has become protected, you will be legally bound to meet the terms of the agreement.