Hi mon,

TDA has provided some very important points that you need to consider when it comes to Trust Deed's.

At the moment you are on the Debt Arrangement Scheme which doesn't have anything to do with your property and will not put this at risk. If you are considering entering into a Trust Deed then your assets i.e. your house needs to be taken into consideration.

Before entering into a Trust Deed a proper valuation of your house should be carried out by a Chartered Surveyor and a redemption figure obtained for your mortgage. From this it can then be calculated what equity you may have in your house.

If by doing this it's established that your property has £17,000 of equity then your Trustee (person in charge of your Trust Deed) has to get this money somehow. This can be from the sale of your house (although this is a last resort), by a third party paying the money over or by extending your Trust Deed onto 5 years to pay this over. It's only in the last two years that you can pay the equity over. This would be a payment of £708 for this. In addition you're not apparently insolvent as your assets are more than your debts.

I think you really need to sit down with an advisor in person and discuss all of your available options in details to establish if a Trust Deed is suitable or not. It may be the case that your property isn't worth what you think and as a result a Trust Deed could be a possibility.

Make sure if you do proceed with a Trust Deed you receive absolutely everything in writing with regards to what will happen to your house. With the information that's available to me I'm not sure a Trust Deed is a safe and suitable option at the moment for you.

You can request a variation to your DAS which can reduce the payments and extend the term. This could help you in the short term and when your situation improves you can then increase your payments to reduce the timescale.

thanks for all the advice, ive been thinking all day and we'll probably stay with das. i will have to find part time job for days when my husband is off.. anyway i will pass the info about td they've offered just im curious if it was fair offer.

hi just received papers to sign. house value 75k, mortgage 93k, car £400.
my debt £11000, my husbands £7500. pay monthly £100each for 60 months..
does it sound right?what could happen if i start earn more?

Hi mon.

So they've verbally informed you the house is worth £110k and then put in writing that it's worth £75k?

they never informed me this..i was asked how much was the value and i said i didnt know as the prices went down, so they asked how much i bought it for... the same when i asked other person if i could lost the house, she asked value, i didnt know so she asked how much we bought for.. never were told anything about 75k value...

maybe they just count the percentage and actually didnt say it, so i assumed it was the number

Sorry if I am complicating this decision for you further, mon, but you should bear in mind that you don't have to choose the same option as your husband.

There is a more significant benefit to you of entering a trust deed as your debts are higher so more is being written off. However, for your husband's part he would be paying in £6000 to deal with just £7500 debt. Given that £3500 of his debt is joint, the debt total would actually be reduced further by the dividend paid to that creditor upon completion of your trust deed. All in all, there wouldn't be much being written off for him so maybe he might feel a trust deed is unnecessary and he could set up a DAS on his own instead?