Hi debs.

The payments should be three years in total, not three years from her discharge.

The firm will need to address the equity for the benefit of your friend's creditors if they believe that there is equity there. The sale of the home would be a last resort if there's no other reasonable way to raise the money.

Thanks for that passed it on .

She was informed the house should of been dealt with in the first year and as they haven't the time scales up she will just have to make the payments and the house is safe.

Actually debs I think you're right.

Wasn't thinking about the discharge you mentioned in your post when I answered. She's heard nothing from them about the house?

She had a letter from them six month before the discharge saying she needed to find the equity or the house would go up for sale that was October last year . Since then she's heard nothing else except a letter about her payments last week which said she was behind in her payments.

The one-year discharge doesn't alter the position of your friend's house I'm afraid debs. It still "vests" in the trustee until the 3-year mark.

Hi Debs,

Unfortunately the property will still continue to vest in the Trustee as Kevin points out. The 1 year discharge doesn't return the asset to your friend.

The Trustee will at some point take steps to negotiate over the equity or arrange for the property to be sold if no agreement can be reached.

It may come down to the house being sold if the equity is £29,000 and you friend is unable to come up with a suitable proposal for this.

Who informed your friend that the house should have been dealt with and because it hasn't it's now safe?

Hi Kevin so it's similar to a trust deed they could sell it at the end of the three years which is just over a year left . She was told they had to deal with the house in the first year as she was sequestered, thanks

If they haven't taken any steps to sell it once the 3-year anniversary passes then the house automatically "re-vests" in your friend, ie the trustee no longer has any claim over it. However, it is easy for a trustee to retain their interest beyond this point, if the value of the equity hasn't been paid over, simply by renewing the inhibition.

So in summary, I'm afraid your friend's house could remain at risk for as long as it takes for the equity to be realised, either by the house being sold or by sufficient payments being made to the trustee.

....unless of course the Trustee fails to renew the inhibition in time, then the property may well re invests in the person!!

Mark

Hi everyone my friend was told by a money advice person that it wasn't worth the company she was with to sell the house and she would be able to keep it this was when she went from a debt management scheme to sequestration. The company had valued the house last year and she's not heard anything since. There is 17 payments left and is wondering when they will do something about the house, thanks for all the replays.

Hi debs,

If the property does have the amount of equity that you suggest then this is at risk and your friend will have to come up with a proposal to deal with this. The only way that the risk to this would reduce is if the equity in the property is a lot lower.

They may look to deal with the the house at any point, could be tomorrow, next week or next year.

Has the Trustee established exactly how much equity there is by carrying out a valuation and obtaining a redemption figure?

Hi David yes they did a valuation last year but she hasn't heard about the house since then .

I think it might be worth her while asking them so that she can at least try and prepare for whatever eventuality.