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[BuddyBoy]

Hi can I ask about the minimum payment i would need to make a Trust Deed work. I owe about £32,000 and am not a homeowner. Based on your living expenses guide, I can really only afford £165 a month. Would this be enough to start a Trust Deed? I have considered the DAS solution but it is simply going to take me forever to repay the whole debt...

[James Falla]

Hi BuddyBoy and welcome to the forum.

There is really no minimum payment for a Trust Deed. The amount you pay will very much vary from case to case. Ultimately the proposal you put to your creditors must be better than what they would expect to get if you declared bankruptcy. From what you have said I would have thought you would be able to propose a Trust Deed with a payment of £165 a month. However you do need to discuss your situation with an expert.

[BuddyBoy]

Thanks James. I am expecting my girlfriend to move in with me in the next 6 months. If this happens will she in any way become liable for my debts? I do not want to involve her or include her in any way.

[Geraldine]

Hello BuddyBoy

Your girlfriend will not be liable for your debts. However, if she moves in with you I assume that she will be contributing to some of the household expenses. Will she be giving you anything towards the rent? If so then your disposable income may increase and you would need to inform your insolvency practitioner of this who may then ask you to increase your payments into your Trust Deed.

[James Falla]

Hi BuddyBoy

If your girlfriend moves in with you there is no way that she can become liable for your debts. However as Geraldine has said given she has an income of her own then she will be expected to help towards the household expenses. As such the amount you have to pay towards these will reduce and so your disposable income and hence the amount you are able to pay into your Trust Deed will increase. As such you might be asked to start paying more.

[BuddyBoy]

The problem is that my girlfriend is unemployed. She is getting some benefits. The reason why she is moving in with me is that she can no longer afford to pay the rent in her lodgings. Will she be expected to pay anything to me?

[Hayden]

Hi BuddyBoy

I think it will be OK for you to support your partner as long as she put something towards her keep. If she has some kind of income I do not think you will be able to argue that she pays nothing. As such her moving in may mean that you have to pay slightly fewer housekeeping expenses and there might be a possibility of your disposable income going up. However this really depends on how much money she does have coming in and whether this covers her basic costs like foord etc.

[Steve Jackson]

Hello BuddyBoy

If your partner has an income you will need to declare this to your Trust Deed. However it is not necessarily the case that this will mean thay you have to increase any payment you are making. Clearly your girlfriend will first need to put her money towards the additional expenses associated with her moving in such as food, clothing, her phone and transport etc. only if she can afford to contribute anything to joint expenses such as rent will it possibly make any difference to you. However if she is on a low income I would assume that this would not be the case.