Hi miss hardup,

The contribution into a Trust Deed will always be based upon what is affordable for you. If ?ú300-?ú400 per month is affordable it would seem that a Trust Deed is likely to be a viable option for you.

Dealing with the equity at the end of a Trust Deed is normally fine. How would you go about raising the equity when that became necessary?

Hi Miss hardup,

I am currently in a trust deed with 60k of debt and I am paying ?ú475.00 per month, don't know about the equity you have as I don't have any but I am sure you will be informed.

Hi miss hardup. I'd say there is a good chance that you should be able to successfully set up protected trust deeds. You would have to be aware though that if there is equity in the property and you cannot raise it at the end of the trust deed then your house may have to be sold instead.

I would also suggest that it is important to ensure that the level of equity and how/when it is to be realised is clearly agreed in writing with your insolvency practitioner at the outset so that you don't get nay nasty surprises further down the line.

thankyou for all those quick replies!
I was very concerned about the amount we could afford each month not being enough to be acceptable for the level of debt we have.
My mother will be selling her home and giving me a substantial amount when this is completed, however due to the current climate she is biding her time and not selling for another year to three years when she will be retiring.
I also have taken into consideration that I may have to sell my home at the end of the term if it comes down to it.
Can I ask if the trust deed is not accepted will I automatically be filed for bankrupcy? or can I sell my house and try to pay off the rest of the debt with a debt management plan?
thanks
miss hardup

Hi Perston
thanks for replying to my topic
Can I just ask is it joint debts that you pay that monthly contribution to?
It just seems if I can only afford up to ?ú400 between myself and my husband then it doesnt look very good perhaps for paying off my level of debt.
Im worried its not acceptable.
thanks.
miss hardup

Hi misshardup

if you are looking at 2 trust deeds then they need to be dealt with separately and will take account of joint debts.

Looking at the figures I see no reason why the Trust Deed option would fail. My advice would be to sit with an IP discuss all matters and ALL options and perhaps have the equity issue confirmed before doing anything. ie have the valuation carried out to assesss the equity beforehand.

Mark

thanks Mark
Im going to get a market valuation for a 'quick sale' in the condition the house is in right now tomorrow(..not good, needs work)to give me a realistic indication of the value, instead of going by 'for sale' prices in the local area for similar properties.
I will then get in touch and discuss, arrange a valuation etc, as I cant put this off any longer.. we are having to sell items in our home to get by, its that bad. Im fighting against sequestrian and know if I dont act now it will be the only option left to me, however, we have suprisingly good credit(!!)and have never missed any payments or been late with payments in the last 24 years..
Can you tell me one thing though. Is it the equity in your house now that is taken into account? Or is it revalued in 3 years time?
thanks
miss hardup

Hi Miss Hardup,

The trust deed is ?ú475 and that is between my wife and I as we have 2 separate deeds, I am ?ú305.00 and my wife is ?ú170.00.

Hi miss hardup,

That's a subject that has caused a lot of people on this forum a lot of confusion and problems.

The experts who post here advocate getting the position as to how the equity will be dealt with in writing BEFORE signing the Trust Deed.

They will then typically look to value your home at the start of the Trust Deed and establish an equity figure there and then. This figure will not change irrespective of movements in the value of the property (and therefore no further valuation would be required).

This manner of dealing with the situation relies upon the acceptance of creditors but the experience has been that creditors are prepared to accept it.

thankyou all for your responses - it has been more than helpful and Im feeling a bit more positive about the options available.
the dark cloud has lifted a bit.
I will be in touch after tomorrow to arrange an appointment with one of the experts when I have a clearer indication of the market value for a quick sale.
kind regards
miss hardup

Hi
I have had a market valuation done today and was told, and have in an email, that a realistic price would be 135k for my house to be sold.
It was also recommended that problems should be fixed such as broken shower, broken boiler..etc.
I am now really concerned as If I managed to sell, which I dont want to do anyway, I would hardly be able to pay off any of my debt.
However, does this make it better for a trust deed with the equity I have in it? mortgage 124k? is there a greater possibility (acceptability by creditors)I could stay in my home and raise the money at the end of the term?
He has recommended a valuation as it could in fact bring the price down, or up, but I dont want to pay out for it if it looks like a trust deed might be my only or best option and therefore would have to get a valuation done anyway.
Is the valuation done by yourselves as a desktop? or a visit to the house as a valuation? if its desktop it would be higher i think.
any advice would be appreciated...im running out of options, and money, fast.
thanks
miss hardup

Hi miss hardup,

If you had decided to embark upon a Trust Deed you might conclude that a lower valuation is a good thing.

Of course, if you would rather sell up to clear some debt, the news would be unwelcome.

If you do decide to go ahead with a Trust Deed there is no reason why a valuation could not take place before signing the Trust Deed so you know exactly where you stand. You would probably have to pay for it but by liasing with the Trust Deed company which you have selected you could instruct a valuer that they trust to provide a valuation that could then be used for the Trust Deed itself.

I would suggest, again if you are sure that a Trust Deed is the right route for you, that you get in writing that a full on-site valuation will take place. In this way you will ensure that any maintenance issues that exist are reflected in the valuation.

I think practice probably varies from firm to firm, but we would certainly get an on-site valuation of your property miss hard-up, the cost of which would be an expense of the trust deed, not paid separately by yourself.

Assuming your figures are fairly accurate, I can see no reason why a trust deed would not work - and the equity paid off by extending the term of the trust deed rather than selling your home.

I notice from your previous post that there is the possibility of a lump sum from your mother at some point. How much are we talking about? This would undoubtedly have to be taken into account if paid to you whilst in a trust deed - though could be used for the purposes of your mother buying out the equity in the property.

Hi
The money from my mother could be given to me in 2-4 years time when she decides to retire. There isnt a set date for it as it will be when she sells her house in a more favourable financial climate so she can set herself up for her retirement.
I would hope it could perhaps pay off any remaining trust deed debt but I have no way of knowing at the moment when it will happen.Im very aware if it didnt happen within the time frame of a trust deed that I would have to sell my home if I couldnt raise the equity.
I am going to get in touch to take the first steps towards a trust deed if thats the advice I get on the best option (im presuming it is) but have a couple of questions:
will my monthly student loan be taken into account as income? Im still a student at uni and work part time.(my husband works full time)I had advice before but its not clear to me how it works as I think I got the part about me paying my own loan back when I get back into full time work over a certain amount, however, not sure about the monthly payments I receive up until that happens.

We have a home shopping catalague which has zero outstanding debt just now. It would have been handy to keep if anything had come up where we were desperate for houseware, clothes etc and know we would have to manage it well. Could we keep this? Would they find out we were in a trust deed if thats what we went ahead and done?
would really appreciate advice
thanks
miss hardup