Hi fifi

Hopefully you have discussed the matters with the IP firm and I would advise that all answers are confirmed in writing before signing anything. There are a number of points and I'll try to address each one.

Most IP firms will be able to let you know in advance if it is likely to be accepted as creditors work to a criteria and as long as you meet that criteria, they will accept the proposal.

If there is no equity (and it has been confirmed) there is little chance of losing your home.

The car is a slightly more complex one. If this is HP, then I see no reason for the position not to continue if they are effectively paying for the car. If it is not and its a fixed sum agreement, then the company would become a creditor and the car would be classed as an asset. Depending on the agreement, the Trustee may accept the parents payment as payment for the car over the period.

The last one is a difficult one and there is no straight answer. It may well be that the new creditor takes a dim view on this and may look at some action. The Trustee would also look at the purchase made on the card.

Mark

Welcome to the trust deed forum fifi.

Creditors have acceptance criteria for trust deeds and other debt solutions. They make trust deed firms aware of these criteria which means that, so long as they follow the rules, firms can be fairly certain if cases will be accepted in advance.

If there is no equity in your home, and you pay your mortgage in full, there seems to be little or no risk on that side of things.

When you say car finance, is it secured upon the car itself (hire purchase for example) or is it a normal unsecured bank loan that was used to purchase a car?

Can I ask what the large purchase was for? It's hard to say how a particular creditor will view such a scenario, but they may not feel positive about such an event if they believe that you knew at the time you'd be unlikely to be able to repay it. Please bear in mind however that people have often used credit cards right up until the point at which they start the protected trust deed process so it may well not be an issue.

You may wish to check with your trust deed firm that your proposal meets the acceptance criteria of each of your creditors. They should also be able to point out to you any areas of concern that they might (or might not) have.

thanks a lot for replying, the car is a fixed sum amount, i guess i just have to hope they continue letting my parents make the payments.

the card purchase was actually money i owed a friend and they wanted me to pay it back on something. i since moved it to an interest free card.

i only discovered what a trust deed was last wk when i saw the advert on the tele and to be honest didnt think it was applicable to homeowners.

i havnt discussed the payment with the trustee but did phone yest to explain i had used my cards up to a few weeks ago. he said as long as i hadnt used them since speaking to them. i only hope this wont hinder me, i guess if this creditor has an issue it is a lot less than a third of my debt.

this is definitely the most stressful time iv experienced, wouldnt wish it on anyone and makes it worse that iv brought it on myself.

Hi fifi.

If the car loan isn't secured they cannot take the car if payments aren't made. Do you consider yourself to be the owner of this car or your parents?

How much was the payment to your friend?

£3000!

i consider the car to b theirs its now registered in my dads name.

Hi fifi

I'd be surprised if the trustee accepted your parents as owners of the car. You'll probably need to reach some compromise agreement regarding this.

As I always say, please ensure all matters are agreed and confirmed in writing before you do anything.

Mark

Sounds like you bought the car to me, acquired a debt for it and are in the process of selling the car to your parents using (and I use this term loosely) a conditional sale agreement. The trustee could allow that agreement to continue, providing he receives the remaining payments.

I have to agree about the car- you need to get this clarified before signing anything. You also need to address the situation regarding your friend. As it stands, you have given her preferential treatment over your other creditors, and as such the trustee could challenge this payment, ie ask her for the money back. You have to be honest with the trustee if you won't the best advice . Remember to get everything in writing!

no i bought the car for them as they are retired and cldnt get finance and as soon as i got the documents i registered it to my dad they hav been payin me the payments from day one and drove it off the forcourt i have a car in my husbands name and have no need for another.

robinhood im in enough mess without needing to come on here and lie for advice. thanks shona wont b signing a thing till i clarify evething

Great.

Hi fifi

Your circumstances are not that unusual. I think sometimes its a case of looking at each point bit by bit and looking at a solution that benefits all parties. You would be surprised how flexible creditors can be. As the guidance says, we act for the creditors, but also have an obligation to the individual as well

It probably seems to be a mass of confusion at the moment, but honestly there are few things that cannot be resolved to everyone's satisfaction. Take away all the unknowns and everything is a lot clearer (Thats why I continually moan about getting these things agreed and put in writing!!)

Mark

thanks all ur advice is going to be invaluable to me over the next few weeks. you should continue to moan as i would not have realised the importance of ensuring everything is in writing before i signed till i came on here.

im sure il b back here soon with more worries and concerns, thanks again!

No problem, we are always glad to assist.