Hi Roy.

When you sign a trust deed your assets vest in your trustee. One such asset is equity in your home. Your trustee is obligated to use such assets, as well as your monthly payments, to pay back your creditors.

If you were unclear about that at the start I'm very sorry to hear it. The reality however is that your trustee is going to have to deal with such a significant asset one way or another.

Given the numbers involved this looks like a really tough situation for you to be in. What options has your trustee given you? How do you see the options to move forwards?

Hi Roy,

Couple of questions for you just so I can understand your situation a bit clearer:

1 ÔÇô How much was your debt when you entered your Trust Deed?
2 ÔÇô How much equity was confirmed in your property at the point you entered into the Trust Deed?
3 ÔÇô Was a valuation and redemption figure obtained at the start of the Trust Deed?
4 ÔÇô What was the agreement on how the equity in your house would be dealt with and paid over?

As TDA has advised when you sign a Trust Deed your assets vest in your Trustee. It's your Trustees job to try and repay as much of your debts as possible by dealing with any assets that you have.

If you can give us some answers to the questions above we can then advise you a little further.

Alas , the same scenario again . He paid his mortgage and created new equity that the trustee now wants !! The cycle continues .
I am sorry if I am churning out the same rubbish but here is the third person caught in the equity trap!

Hi goneunder.

We don't know that.

This is the third time Roy has posted here but I'm not sure we've ever heard back from him to provide the extra information to understand his situation properly as yet.

If a home has to be sold to bring a trust deed to a close all of the equity will usually have to be paid over. That's obviously based on the sale price minus clearing the mortgage at the time of sale.

As we know though a sale, or particularly a forced sale, would be a last resort normally where a previous plan to deal with the equity hadn't been achieved.

Sorry for late reply just learned how to work this i am an old man the sale of my property is not the last resort but its the one the trustee seams to prefer more money for him i suspect

If in the event that it comes to a forced sale can i use my own lawyer to do this

Hi Roy.

If you're facing the loss of your home you may wish to take legal advice now, in particular if your inclination is to try to stand in the way of that happening.

I have tried a couple of local ones they said that they have no experience of dealing with trust deeds can you suggest a couple please

I can't make a recommendation of a lawyer to you Roy.

You'll want to find one that advertises that they do insolvency work. They'll understand trust deeds.

Hi I am now looking to obtain equity release from a company that do this for the elderly this would release enough funds to pay of their cash settlement figure can the trustee stop me from doing this & force the sale of my house in order to obtain twice that amount Thanks Roy

I think we'll answer this on your other forum thread Roy to avoid duplication.