Hello Jersey and welcome to the forum.

Depending upon the amount of equity your Trustee may be prepared to accept additional monthly payments from you in lieu of the equity. It's helpful that your monthly contribution is substantial.

There seem to be one or two Trust Deed firms encouraging/forcing their clients into PPI claims. If you genuinely believe that the insurance was not sold properly I guess that could be fair enough. Out of curiousity you may wish to ask your Trustee what the commission agreement is between them and the solicitor or claims firm they put you in touch with.

I'm sure that your Trustee will want to issue dividends to all of your confirmed creditors.

Hopefully there will be no need to sell the home but if that is required I'm sure that a reasonable amount of time would be allowed (assuming the Trustee allows you to sell the home rather than doing it him/herself). How much equity do you think that there is in the home?

Hi Jersey

Like TDA states it really does depend on how much equity is in your property as to whether your trustee will allow you to make additional payments over a specified period of time.

I do know that some firms are pursuing PPI claims, and provided the claims are valid I don't see a problem with this.

If your trustee is successful in respect of the PPI claim, any sums ingathered will be paid to your trust deed. If however they only started the process in May this year, I would of thought that this may take some time to finalise, so I would make sure that you keep on top of it. The longer this is outstanding, the longer it will be before you get your discharge.

Creditors have to submit a claim in a trust deed and also provide satisfactory evidence in support of their claim. It's amazing how many creditors fail to provide this however! My firm gives creditors a number of opportunities to submit the relevant information and if, in the end, they fail to do so we advise them that they will not be entitled to receive a dividend. The estate (all the sums ingathered) is then divided up between all the other creditors.

Like TDA states, hopefully there will be no requirement for you to sell your home, however as it would be your trustee selling the house, and not you, I would of thought that it would be as long as it takes to sell it, though you may be in a position to delay the commencement of the marketing in order to allow you time to find an alternative property.

I would also suggest that you that you write to your trustee and ask them to let you know what the position is with the house and the PPI claims as soon as possible!

Hope this helps!

Julie

Thank you for those very useful replies.

The Equity is approx. 28K which is almost the amount that we have paid over the past 3 years. The total amount claimed by the creditors was approx. ?ú 30K so would they sell the house to raise just a few thousand pounds? or am i over simplifying things?

i have already written to the trustee asking for an update on the PPI claim/claims but heard nothing on that yet.

So do you think it unlikely that they will pursue the equity/ house sale until they have an outcome on the PPI claims?

Hi Jersey

sorry to maybe confuse things here, but could you advise me of the equity amount and the total debts at the start of the Trust Deed.

Mark

Hi,

Total debt was approx. 40K jointly total equity on the original documents was 28K.

Total mortgage outstanding is approx. 72K with a secured loan of 20K both redemption figures.

Total paid each month over the past 3yrs was ?ú750 jointly which i think is approx. 27k?

Hope this helps?

Hi Jersey,

I think that Mark and some other readers may have been a little concerned as to whether a Trust Deed was the best option given the size of your assets and ability to make a sizeable monthly contribution.

If I'm reading this correctly:

1 - Your equity jointly was ?ú28000 at the start of the Trust Deed.
2 -Your debts combined totalled ?ú40000.
3 - You agreed to pay ?ú750 per month for 36 months (?ú27000).

Could you clarify a little the comment that total creditor claims were ?ú30000? Have some creditors not come forwards or responded to your Trustee?

I know this doesn't directly answer your question but will be useful background for the experts to explain how things might develop going forwards.

Hi Jersey

Sorry for all the questions. It appears the Trustee had a valuation carried out at the end. The result appears to be that the equity in the property is the same as it was 3 years, so you have buccked the national trend!!

I suspect that the equity on the 2nd valuation may be lower, but the Trustee is now looking at the 1st valuation. I would certainly request copies of all valuations and redemptions.

I think TDA is correct. Your initial statement of affairs would have shown you to be solvent and so the Trust Deed was not perhaps the best option.

Do you have a copy of the original statement of affairs and proposal to your creditors?

Mark