The new trust deeds ie from sept 2013 give you an equity decision of how this will be handled at the start of your trust deed, but unfortunately anything pre this time is uncertain, I would suggest again that you contact your new trustee to establish the equity position, this is becoming an ever popular concern of folk reaching the end of their trust deeds, and to be honest there prob is no chance of you being able to remortgage due to your credit status, so your only option I think is an extension to your original payments to cover the equity position, and I'm sure that your new trustee will know there is prob no chance of a remortgage so will hopefully agree to your extension, good luck.

Hi Zeaus1976 and welcome.

The equity in your home "vested" in your trustee when you signed your trust deed. I'm afraid their obligation is then to raise this sum, in addition to your monthly contributions, to help repay your debts.

How you raise it is obviously a very difficult question. Smaller sums might be dealt with by extending the monthly payments or borrowing from friends or family, but this is less likely to be feasible with such a large sum. Remortgaging is unlikely to be an option, just as it also wasn't likely to be three years ago.

Can the sale of your home be forced? I'm afraid that the answer is yes, though this would always be a last resort.

Can you extend your payments for two years and then be discharged? This seems unlikely to be agreed with your creditors, but you'll have to get guidance from your trustee. I wouldn't go getting into extended payments unless you have written confirmation that this will result in you completing your obligations and being discharged once you've done what was asked. The danger is you'll face the same dilemma in two years time otherwise.

How much equity do you think there is in your home now?

Hi Tallhotblonde.

The new rules might have led to a more explicit discussion about how a fixed sum of equity would be dealt with at the start of the process, but in either scenario the amount of the equity would still have to be paid over. When it's large sums of money involved the difficulty is obvious.

Extensions to cover equity can't go on indefinitely, but if a sum can be paid over a couple of years for example an agreement can often be found.

Thank you TDA and to TALL HOT BLONDE for the answers. However, TDA I still feel like Bill Murry in Ground Hog Day, so Excuse me while I throw the toaster in the bath and ask the same question again.

Why is my trustee telling me an extension of (the same monthly payments) i.e. no increase, will result in me clearing my TD if extended for two years?

The TD scheme is meant to compress and or indeed write off 90% of your debt right? However, if I continue to pay that of my monthly's + my equity secured and agreed back in 2012, this would mean I would've paid almost 70% of the debt I owed in the first place, so none of this makes any sense. It sounds (with respect) that even the people who work for the companies don't know the right answer?

Are the employees who represent these firms aware of the pressures and worries the families involved are experiencing?. Rather than ease those worries, the pressure is being increased because you give us no direct and or correct answer(S)?

Looks like the only answer to me is to engage an insolvency solicitor and take it from there. Insofar as a trust deed writing off 90% of your debt, well, this is obviously not true, and it appears that companies are cashing in on the vulnerability of people like me who enter into the scheme's at a time of desperation, which to me is sickening.

I understand the volunteers on this forum are giving up their own time to answer questions for FREE, and for that I am grateful. But just read the threads, dozens of questions get responded to with open ended answers and with no certainty whatsoever.

Can someone remind me of the point in entering a trust deed if you end up paying back almost 70% of what you owed anyway?

Confused......

quote:

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Originally posted by Trust Deed Assistant
[br]Hi Zeaus1976 and welcome.

The equity in your home "vested" in your trustee when you signed your trust deed. I'm afraid their obligation is then to raise this sum, in addition to your monthly contributions, to help repay your debts.

How you raise it is obviously a very difficult question. Smaller sums might be dealt with by extending the monthly payments or borrowing from friends or family, but this is less likely to be feasible with such a large sum. Remortgaging is unlikely to be an option, just as it also wasn't likely to be three years ago.

Can the sale of your home be forced? I'm afraid that the answer is yes, though this would always be a last resort.

Can you extend your payments for two years and then be discharged? This seems unlikely to be agreed with your creditors, but you'll have to get guidance from your trustee. I wouldn't go getting into extended payments unless you have written confirmation that this will result in you completing your obligations and being discharged once you've done what was asked. The danger is you'll face the same dilemma in two years time otherwise.

How much equity do you think there is in your home now?

---

We signed an agreement going in that allegedly FROZE the equity alongside the fees set out therein. However, the relaxed attitude to such a sever situation gives me the fear that this entire program is being made up by the firms involved as they go along. Forgive me for saying, but what else can we think when you are told one thing going in, then another the month your about to exit three years later? If the equity is not FROZEN then this screams of malpractice by the firm who locked us in, and if your intimating that there's a possibility my equity may not be frozen, then I'll not be going down without a legal dog fight with the firm signed me up and later sold out.

Hi Zeaus1976.

I have answered your question directly. I'm sorry that I cannot give you the answer that you want to hear, I wish I could, but there's no point in being anything other than straight with you.

I can't answer as to why your trustee is giving you this information. You need to clarify that with them, as I explained in my first reply. I tried to point you in the right direction about issues to go through with them. We've many skills... mind-reading isn't one of them.

Your understanding of what a trust deed is doesn't match reality, though I accept some of the marketing you might have read elsewhere (not here) could have contributed to your frankly misinformed view.

So I agree with you that a trust deed will not necessarily write off 90% of your debts. Nobody here said it would.

A trust deed is a last resort to deal with a very serious debt problem, an alternative to bankruptcy when things get really tough. It writes off the debts you cannot afford to repay. It doesn't write off the debts that you are, through surplus income and assets, considered under insolvency law to be able to afford to repay.

You need to understand the scope of a forum. We can point people in the right direction, share information and knowledge, and help people to help themselves. We can't give legal advice, we know only what you tell us about your circumstances, we only have one side of the story, we cannot read the mind of your trustee, we haven't seen the agreement you signed, we weren't there at the first meeting, we don't know what your options were when you chose to sign a trust deed.

So, on that basis, if you'd like our help we'll try to help you. I do sympathise with the situation you're in very much. A threat to your home must be an awful position to find yourself in.

quote:

---

Originally posted by Trust Deed Assistant
[br]Hi Zeaus1976 and welcome.

The equity in your home "vested" in your trustee when you signed your trust deed. I'm afraid their obligation is then to raise this sum, in addition to your monthly contributions, to help repay your debts.

How you raise it is obviously a very difficult question. Smaller sums might be dealt with by extending the monthly payments or borrowing from friends or family, but this is less likely to be feasible with such a large sum. Remortgaging is unlikely to be an option, just as it also wasn't likely to be three years ago.

Can the sale of your home be forced? I'm afraid that the answer is yes, though this would always be a last resort.

Can you extend your payments for two years and then be discharged? This seems unlikely to be agreed with your creditors, but you'll have to get guidance from your trustee. I wouldn't go getting into extended payments unless you have written confirmation that this will result in you completing your obligations and being discharged once you've done what was asked. The danger is you'll face the same dilemma in two years time otherwise.

How much equity do you think there is in your home now?

---

For what it's worth TDA I appreciate all your help as I know your taking some heat on here which is not fair. It's not my intent to make you're life difficult by any stretch. I would just like an answer as to (can my TD be extended) if I cannot pay the equity? And under what circumstances is a home sale forced and when?. Again, to be clear, I know your just a moderator and I really appreciate your help wherever possible.

When you're talking about equity being "frozen" could you please explain precisely what you mean by the term?

I'm wondering if you're ascribing a different meaning to the one that I am.

I'm not taking any "heat".

I've answered questions. Sometimes people don't like the answers. Sometimes people aren't especially nice to people who tell them things they don't want to hear. Which says more about them than the person who tried to help.

Straight answers (as before):

Can your trust deed be extended? You need to ask your trustee. I'm concerned given the equity sum you mentioned is large, so an extension might not be a feasible way to complete your obligations. It's between you, your trustee and your creditors.

When might a forced sale take place? As a last resort to deal with an equity obligation which, in the view of a trustee, cannot be resolved reasonably through less severe means. It's between you and your trustee.

I'll try to put a positive light on your "just a moderator" comment. I'm sure you meant this in a nice way even if it might be taken otherwise?

Posts and replies jumping around. Happens sometimes when people are writing at the same time.

Sorry if it's a confusing read.

Zeaus1976
You may have read some of my posts . We have a similar situation going on.
I too had outstanding equity so I continued to make monthly contributions . I did this for an additional two years whilst paying my mortgage . As a result I created additional equity which I am now after two years still obliged to pay .
I am worse off after 6 years in a trust deed .

I too like you am considering legal action as I was advised I would remortgage to release equity and save my home .

Yet I am struggling to keep it after six long and very painful years .

I too think the companies must take the flack for wrong advice

Hi goneunder.

We don't know the basis of advice here.

I've asked a couple of questions to try to understand what it might have been. They haven't yet been answered but may be in due course.

I'm particularly wondering what has been understood about the word "frozen".

quote:

---

Originally posted by goneunder
[br]Zeaus1976
You may have read some of my posts . We have a similar situation going on.
I too had outstanding equity so I continued to make monthly contributions . I did this for an additional two years whilst paying my mortgage . As a result I created additional equity which I am now after two years still obliged to pay .
I am worse off after 6 years in a trust deed .

I too like you am considering legal action as I was advised I would remortgage to release equity and save my home .

Yet I am struggling to keep it after six long and very painful years .

I too think the companies must take the flack for wrong advice

---

Yes, I read and I am sorry for your situation also - Like you, I will not hesitate on initiating legal action against the company who put me in this agreement should it be found not to be legally standing. Luckily I have all the paper work so I'm prepared either way. But first, and so that Trust Deed Assistant doesn't take offense, I'll refer to her as her proper title from here on in "Qualified Debt Adviser & Trust Deed Forum Administrator" which just FYI TDA "administrator and moderator" (in a digital environment) are one of the same thing so I hope that appropriately answers your condescending response. You (as the moderator of this forum) present yourself to us for questions, thus resulting in you being asked questions. If you don;t like it then, don't moderate, simples.

Thanks for reaching out Goneunder - I just find the whole initiative bizarre, confusing, and not fit for purpose. We enter into an agreement and surrender our asset while agreeing to pay a fixed monthly amount. This amount is then distributed to our creditors. My understanding was at the end of this agreement our asset (that has our equity) would be released, assuming we stuck to the fee agreed upon entering the agreement? Agreeing to pay a fixed monthly fee for the courtesy of delaying the inevitable seems MINDLESS to me, and totally contradictory to the reason why the TD initiative was put in place which was to stop insolvency and families losing their homes. It's just a mess, so in the AM I'll speak to my knew trustee (a polite assistant hopefully) and then have everything sent across in writing. Then if need be I'll engage my lawyers. Asking anything on here would just lead to nothing but utter despair. So in the words of the Dragons "I'm out"