Hi CIF. It is common for a Trust Deed to run for 1 extra year if there is a reasonably low amount of equity involved, so I this may well apply to you too.

In terms of how much you would have to pay each month, that can only be answered by going through your budget with you in more detail, which myself or any of the other experts on this forum would be happy to do, I'm sure.

Did you ever ask to switch to a repayment mortgage instead?

Hi Kevin, thanks for the response.

NRAM refused to put me on repayment and ultimately sold the mortgage on.

I am just a bit concerned about which firm to go with, if they have varying approaches to equity thresholds. It could mean the difference between me keeping and losing my home. Appreciate a budget needs to be reviewed but is it theoretically possible that I could have to give half my salary to the monthly TD payment?

Hi CIF,

As a payment is based upon affordability I guess it is technically possible that someone could be asked to contribute half their salary every month. The point however is that this would only happen if there was genuinely this much money left over after creating allowances for all of an individual's bills and all of their other reasonable expenses. I cannot remember a recent case that I've had any personal involvement in where someone has actually been asked to contribute half of their salary.

There's nothing to stop you speaking with a couple of firms to assess any differences in their approach to dealing with the equity in your home. It's probably a good investment of your time if it results in you feeling sufficiently comfortable and reassured to proceed with a plan to address the debts.

Hi CIF, if I were you I would reach out to a couple of experts/firms and find out exactly how a Trust Deed and equity will be dealt with. That way you can make an informed choice on the best option for you.

Thinking about it, I reckon a trust deed could be possible which allows for a certain amount to continue to be paid towards repaying your mortgage capital regardless of the fact it is an interest-only product you have. It'd be something that I would look for guidance on from the Accountant in Bankruptcy first and it would need to be made clear to your creditors on any proposals, but I think there is an strong argument for it logically.

Thanks Kevin - is there any precedent for it? Anything I have read before has always suggested this is a total no no.

I don't know, but I think it is worth asking the question. I'd argue that there needs to be some sort of plan in place for repayment of the mortgage and if there would be too little time remaining on the term to wait until the end of a PTD then maybe creditors wouldn't object to some level of payment being made during it.

Thanks Kevin. Are you able to say what your firm's equity threshold is, or would that be something that has to stay undisclosed? The article on this site says that the standard is £5k but some firms have much higher thresholds than that.

I know I need to sit down and go through things properly with someone but I'm just just trying not to sit down with multiple firms and pick one. I would rather try and get a few questions answered first and then pick one from there and run with it. I hope that makes sense?

It isn't quite as straightforward as that, CIF. As insolvency practitioners our job is to seek to gather in as much as is available for creditors. When it comes to Trust Deeds there is a bit more flexibility as creditors get a chance to accept or reject any proposals that are being made.

However, there are a few factors that feed in to what offer can be made, for instance: how much would be able to be gathered in by extending the term of your Trust Deed?; Is there a third party that can pay anything in?; Would a re-mortgage be available?

If the latter two of these aren't available (as is commonly the case) then it boils down to whether enough can be gathered in by a term extension that it would compare favourably enough with the alternative open to creditors - ie sequestration, a forced sale and the costs that would be incurred by that. Again, projections of such costs can vary depending on the circumstances (eg is it a family home, what is the market like in that area etc). As long as what is being proposed isn't too far away from the net return that might be achieved by a forced sale then I would usually be happy to put the proposals forward.

All of which is a long-winded way of saying that there is no set figure and it depends on the circumstances. What I would say is that I regularly feel comfortable proposing Trust Deeds where there is a fair bit more than £5k equity not being gathered in. I hope that helps!

Hi Kevin, thanks very much for the response. That does make sense.

I will get the contact form filled in with my details. Is there much of a waiting list at the moment? Appreciate that there is a lot going on in the world that is likely to have increased your workload. Also, I take it appointments are being done by phone?

No, there's no waiting list - though we are certainly starting to get busier in the last couple of weeks. It'll be phone and email primarily just now, though we can do face to face calls via Teams too.

Thanks Kevin to yourself and Amy and bearing with me with the questions. Apologies for being a pain with them but you have given me enough to know I can have a meaningful conversation with you to take things forward. I will fill in the contact form - will it be yourself doing the call?

Please don't apologise for asking questions, it's important you do. The amount of times we have seen people on this forum that haven't asked enough questions of their chosen trustee firm is testament to that.

Yes, it will be me doing the call, after you have an initial chat with one of the advisers from the site to get some of your details so that I am not starting from scratch.