Hi niceadvice and welcome to the forum.

Hopefully taking the first step will make things easier and hopefully clearer.

I assume from the information that the joint loan is a together loan with NRAM.

From the information provided, your husband would be liable for the full balance of the joint loan if you alone were to enter a trust deed. Don't worry, most people think it's only half they need to pay. You are unable to do a joint Trust deed as these need to be separately done.

It's always best to do a full review, however DAS or Trust Deed may fit the bill. DAS with your estimated surplus would take approximately 10-11 years to complete. The Trust Deed is, at present, a standard 36 month proposal.

Property is always the biggest issue in my opinion and I would advise that you discuss this with an IP if you decide the trust deed is the best option. In all trust deeds we deal with, we have a valuation carried out before signing anything to clarify absolutely what the position is on equity. If there is no equity, then that position stays.

If the car has a value of £3k or less then this is excluded from the trust deed.

Best advice is to sit with an advisor and discuss all options and ensure all matters are agreed in writing before deciding anything. Don't accept 'might be' or 'could be' answers. Everything should be exact.

Hope this helps a bit.

Mark

Thanks Mark

your help is really appreciated, especially on a Saturday morning.

You are right the loan was with the mortgage with Northern Rock and taken at the same time.

I looked at the DAS plan, but think 10 or 11 years will be too long as i'll be retired by then. Can I ask what you mean by 36 month proposal at present for the trust deed.

You are right about the house. The reason I delayed dealing with things is I was worried creditors would take the house if we looked for help, but I'm a lot more confident on this with your advice and understand the valuation part.

The car is worth less than £3000 in my opinion as we seem to spend this on fixing it every year!

On the figures, could a trust deed be set up for us both or should my husband have other options.

Hi niceadvice

no problem. Having a nice easy Saturday.

The 36 month period for the trust deed will change to 48 months in November. That was the reason I mentioned it. The Northern Rock 'Together' loans are pretty common and are accepted in Trust Deeds if the right criteria is met. This wont have any impact on your mortgage and you continue to pay this as normal. Once the trust deed is protected, the unsecured part becomes a claim and they will stop taking the deductions for this.

The position with the property is always key and there should be no doubts on this matter. We always have the property valued and then clarify the position before any documents are signed. That way there are no grey areas and you know exactly what lies ahead.

On the figures provided a trust deed could be set up for you both individually, although as always this would require a full review to fully assess the position.

The hardest step is sitting down and discussing the options, but honestly it will give you a clearer way forward.

Mark

Thanks again Mark

Would we need to pay for the valuation or the meeting?

Hi niceadvice

No. We have a surveyor who will carry this out for us at no cost if matters don't progress.

As for the meeting, all I ask is a decent coffee and the odd biscuit thrown in! ( not in the coffee I mean!)

Mark

I've been a member of the forum for a while, but not posted recently.

The property is a big issue and I agree that this should be fully discussed and agreed before doing anything. I was fortunate to go with Marks firm and the whole process from the initial meeting to the discharge 3 years and 3 weeks later was agreed up front and went to plan with no hiccups whatsoever.

Being able to pick up the phone and speak to Maria or Mark at anytime was also a big thing. It's a shame when you read some of the horror stories with some firms, but I suppose its big business for some where the money is more important than the person. Thankfully this was never an issue with me and it was the biggest and best decision I ever made.

Hi catoneil

Thanks for the kind words.

I think some firms just over complicate things and as you say, fees for some firms seem to take priority.

I like things simple. Agree a proposal at the start and both parties do their bit as agreed. That way creditors receive what was proposed and it allows for the trust deed to be closed in a decent time frame.

As a firm the communication thing is important and as you say Maria or myself will always be available throughout. People can spend days panicking about something which may take 2 minutes to clarify.

Really glad it worked out as planned.

Mark

Mark

It is probably worth saying that you and your husband don't have to take the same option, niceadvice. If there is a reason that either one of you wouldn't wish to enter into a trust deed then that may be able to be accommodated.
Different routes often suit if one partner owes a lot more than the other, or earns a lot more than the other (or both!). As Mark says - any decent insolvency practitioner will sit down with you and work through the various options, then let you choose what suits you the best

Hi Mark

You mentioned the change from 3 years to 4 years for trust deeds.

There was a post earlier from someone whose trust deed seemed to be based on a compensation payment being paid to creditors but no wage payment as they were on benefits which didn't count, but would they make it last for 4 years.

Hi niceadvice

It may be a bit of a grey area, however I think the guidance will state that the Trust Deed will extend over a four year period where the income and circumstances are sufficient to justify this.

In the example you state, it may be that this could be a shorter term Trust Deed.

At present we have quite a few trust deeds which are for a reduced period of time as the main funds going to creditors are from policies, equity etc but with no viable means to maintain a contribution. These have all been accepted on this basis.

Bottom line is, come November, if the individual is able to maintain payments for 4 years, then they would be expected to do so.

Mark

Looking at the draft regulations, they same to suggest that ALL protected trust deeds must run for the full 4 years, unless a trustee believes that a shorter period will suffice to pay debts and interest in full.