Hi Billyboy1 and welcome.

Assets are relevant to trust deeds.

Assets that you own at the beginning (when you sign) are taken into account. For example, if you own a car worth more than £3,000 when you sign you might have an extra liability to make payments. This could be handled by some extra payments for example.

Assets that come into your possession during a trust deed are also taken into account. If you were to inherit this property prior to being discharged, then your trustee would be obligated to use your asset to help repay your debts. In some circumstances that might mean having to sell the asset.

These are certainly things that you should take into consideration when considering how to proceed. What your parents choose to do with their will is, of course, a matter for them. They could choose to change it.

Hi thanks very much for the reply I will have to think of things carefully here.would I be better selling my current car as its valued at more than £3k and getting a cheaper one I honestly don't know what to do for the best here.a big thanks anyway.

Hi Billyboy1.

Do you own the car outright, or is it subject to finance still? Downgrading to a cheaper car is certainly an option if you are entering a Trust Deed but might not be necessary, and in any case if you do this then you would still be expected to pay in the funds that you have released by doing so.

Your half share of your parents' house would only become an issue in the unfortunate circumstance that you inherited it during the course of the Trust Deed. However, if this did happen then it would undoubtedly be expected that the value of your share be paid across towards your debts (or as much as is required to settle your debts plus interest plus the costs of the Trust Deed).

Hi thanks for the reply yes I own the car outright.thanks for your valuable information as I have not got a clue about all this.

Hi Billyboy1.

It might be a good idea to get some personal advice. This would really help you to understand which debt solutions might be suitable for you. The adviser will also be able to tell you about the advantages and disadvantages of each of the options that you have.

We'd happily help, or you could contact Citizens Advice or your local authority's money advice team, or the Money Advice Service can signpost you towards advice services that you can use.

Thank you think I might need some advice soon.will go to citizens advice tomorrow does the advisors ask how you accumulated the debt or just want to know how much debt your in.thank you

Hi Billyboy1.

An adviser is likely to ask you how the debts built up. The answer can sometimes be relevant to the advice that you're given.

For example, with gambling debts a trustee is likely to want to see evidence that the gambling has stopped before a trust deed went ahead.

This isn't coming from a judgmental place. It's done to ensure that any debt solution that is recommended is genuinely likely to help you.

Using the gambling example above, if heavy gambling were to continue then it's highly likely that the trust deed would fail at an early stage.

How much debt is that you have, Billyboy1?

As I said before, it isn't necessarily the case that you would have to give up your car if you went into an insolvency procedure such as a Trust Deed. Our policy is to use the car's trade-in value as the relevant figure, which is always below what it might be worth from a private sale. If there is a suitable arrangement that means that you can keep the car then that could be acceptable. For example, it can be possible to agree that a Trust Deed is extended in order that extra is paid in instead.

My debt is £38k but I o my parents a lot as well things would be more easier for me if i dident o my parents money because that would not be included in a trust deed.feel like burying my head under the sand and hope it goes away but it won't.

As you say, the old ostrich routine is very tempting but not very effective I'm afraid.

The debt to your parents might not cause a big problem. Are you having to pay that back to them just now, or are they happy to wait for it?

By the way, feel free to contact me via the button below if you want to discuss this directly prior to going along to the CAB. Is probably easier than going backward and forwards on the forum.

Very much appreciate the advice iam paying them back as much as I can but some weeks iam not cos of paying money elsewhere.this is a great place for advice I have also been off work with the stress of all this.i have a family funeral on Friday I think iam going to wait till I get that out the way and then tackel this problem full because it's not going to go away on its own.i got into this mess and i have to get out it some way.thanks

Hi Billyboy1,

It sounds like things are difficult for you at the moment. With approx. £38,000 of debts you have certainly done the right thing in reaching out for help and advice.

Some good advice from TDA and Kevin on your concerns.

A Trust Deed can be a very effective way of regaining some control of your finances and paying back an amount which the lenders are prepared to accept. Doing this over 4 years or a little bit longer if you have some value in your car will allow you to move forward with life. That’s the key part, you want to get in and out of a plan and move on.

Take your time, do a little research and speak with one of the experts on the forum for some advice as well as your local citizens advice. Keep in mind that the local CAB won’t be able to physically set up a Trust Deed for you but could suggest someone that they trust.

If you take your time, ask all of the right questions which you have been doing already and then proceed with the advisor and firm you feel most comfortable with things should work out ok. Remember to get everything to do with your payments and assets confirmed in writing and make sure they also explain their alternative options.

There are plenty of positive stories from people in a similar position to you who were nervous to begin with and then pop back onto the forum a few years later to ask about what happens when their Trust Deed ends etc. They then come back on to ask about mortgages and buying a house so there is life after a Trust Deed or any of the other debt solutions.

Yes the advice you have all given me is gratefully appreciated and i mean that,just hit rock bottom at the moment.my main focus is tackling this problem and getting back to work.a hate being off work but just wish it was for different reasons.but all your input has been great and such a nice bunch of people.there will be people worse off than me and some people better off than me in my position.i look at disasters every day on the news and think to myself its only money problems I have and can be sorted with the right advice and professionals.but it's up to me to get things started.very impressed with this forum just wished I had discovered it months ago.thanks all

A brave decision and step is acknowledging that you are financially struggling and then reaching out for help and advice. Once you do that you will find plenty of support and help out there and on the forum.

The way to think about it is this time next week you could be proceeding with a plan and instead of thinking you have £38,000 of debt this is simply 48 payments of X if you do go ahead with a Trust Deed.

Let us know how you get on.