Sorry forgot to ask, have trust deeds changed to 4 years from 3 ???

Hi eck999

Yes, trust deeds changed from a fixed 3 year period to a 4 year period in November 2013.

I note the point re the other property and this would rank as an asset under a trust deed, although this does not mean the property would be sold. The normal process would be to have the value of the 10% assessed. The valuation for trust deeds will normally be lower than that of an estate agents, then by deducting the settlement figure for the mortgage, would give the equity of which your share is 10%. This can be dealt with by third party payments or an extension to cover equity.

The position re the drop in income shouldn't rely be an issue as the payments could be adjusted to take account of this through the period of reduced pay.

Given the level of debt, it may be wise to sit down and look at what options are available and the time period for each. This would also give you time to review the 10% matter and have this clarified.

Mark

Hi eck999 and welcome to the forum.

Sounds like things have been pretty difficult recently and with major surgery coming up soon I suspect the last thing you want to have to worry about is your debts and the repayments.

Dealing with the property really can be quite a simple and straight forward process. As Mark said, for the purposes of a Trust Deed or even Sequestration (Bankruptcy) the type of valuation we obtain to calculate the level of equity is normally less than an estate agent would provide. This is carried out by a chartered surveyor who generally covers the area that the property is in and it is normally a ÔÇ£drive pastÔÇØ which means they don't require access to the property. Once the valuation has been obtained, you would need to provide a redemption figure for the mortgage in order to calculate the total level of equity and to then work out your 10% share.

I note that you've mentioned that your ex may react negatively to your situation if she found out. You may need to speak with her to obtain a redemption figure for the mortgage. I suspect that this may worry her so it may be useful for her to be involved in the information process so she has an understanding of what you are doing and therefore doesn't worry or stop you seeing the kids. It's really up to you how much you involve her. It's very unlikely that the property would need to be sold.

If you do have equity in the property then you can either extend your monthly payments at the end of the 4 years to pay this over or a friend or family member could make repayments alongside yours to keep your Trust Deed to a 4 year period. All this should be discussed with the advisor and agreed before you sign anything.

In the interim whilst your off work and on a reduced income your Trust Deed could be structured in such a way that the payments are smaller to begin with and then increase as your income returns to normal. By entering a plan at the moment that can protect you from your creditors taking any kind of legal action against you if you're not able to make the contractual monthly repayments. This will allow you time to focus on the surgery and the recovery period.

The positive this is that you have solutions to your problems which really can be quite simple and straight forward. The best thing to do is sit down with a couple of advisors, discuss all of your options from a Trust Deed, Debt Arrangement Scheme to Sequestration and then pick which one you feel best suits your circumstances and which advisor you feel most comfortable with. Once you do decide to proceed make sure you receive everything in writing with regards to how things will work i.e. how much equity, how this will be paid over, what your monthly payment and what will happen to any bonuses or overtime.

Do you own any other assets i.e. your own home?