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Scottish Trust Deed Forum
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Topic starter
08/07/2010 7:55 pm
I have currently been in a trust deed since Nov 2009, for part of that time I have been off long term sick from work on a reduced wage and my trust deed monthly amount was altered to take this into account.
It now looks likely that I won't be able to returned to work and they may start dismissal proceedings around August this year.
I have my own flat but selling the property would not give me sufficient funds to clear the outstanding mortgage so my trustee is unlikely to grant permission to sell.
If I am dismissed from work and unable to pay my mortgage, trust deed and other commitments what happens?? Will I become bankrupt?
Any advise gratefully received.
09/07/2010 9:37 am
Hello lou7296 and welcome.
I'm sorry to hear that you are in such a difficult position.
Do you anticipate any possibility of beginning with new work?
Have you calculated what income will be coming in if the worst happens and whether that would, at least, allow you to carry on paying the mortgage and your household bills?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
09/07/2010 10:08 am
Hi, thanks for the reply.
At the moment I don't think I will be fortunate enough to get another job straight away, obviously I will be looking but I anticipate that anything that I do get will be on a much reduced salary.
I live on my own so only have my own income to rely on, so if the worst does happen there will be nothing coming in.
09/07/2010 12:22 pm
Hi lou7296,
In certain cases, due to a change in circumstances, a bankruptcy can become a more appropriate way of dealing with debts than a Trust Deed.
If your house is in negative equity, and you can find a way to continue funding the mortgage payments, you should be able to stay there.
Like a Trust Deed you would need to pay what you can afford towards your debts for three years. Unlike a Trust Deed, if the affordable amount is zero, you will not have to pay anything.
Rather than the Trust Deed I think the most important thing right now will be to investigate what financial entitlements you will have if you are dismissed so that you can assess whether you will be able to fund your mortgage and other domestic expenses.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
