Hi Hel34

the position with the equity should have been clearly advised at the start of the Trust Deed before you signed. It may be the value on the date you signed or on the 3rd anniversary. Were you advised this at the start?

Mark

Hi Hel34

I would echo Mark's comments, if however you aren't sure you could ask your Trustee to provide you with a copy of the Statement of Affairs that would have been sent to your creditors at the onset.

Julie

A common way of dealing with equity is to extend the payments to the trust deed for a longer period (eg an extra year or two). In many cases this will be sufficient time to buy out all of the equity that is being sought - though may not be if the equity figure is quite large...

Thanks for all the replies. When it was signed, the figure of 13000 was stated, and signed! My point is what if the equity isn't there next year? What happens if there is a property crash? Do you only get a max. of 2 years to pay it because I don't think I could come up with that amount in 2 years? For some sort of peace of mind, I just need to know all my options and all scenarios. I need to prepare if I've to lose my home.

There is no maximum period for a trust deed, though it is really up to your trustee what kind of arrangement they are willing to agree to.

Given the fall in property prices, if there is no/negative equity in your house then I wouldn't imagine that your trustee would want to take possession of the property and sell it as there would be no gain in doing so. If it is not going to be possible for you to find the amount originally proposed to creditors then there may well be room for manoeuvre to find a workable compromise.

Bottom line is, you are going to have to discuss this with your trustee and try to find a way forward. Let us know how you get on will you?

Thanks Kevin. Am I right in saying then if there is no equity or not enough then the ptd will go on until such times as when I have either paid up the 13000 or there is the equity there to get it? Therefore it could go on for some time after the three years?

Hi Hel34,

Kevin will correct me if I'm wrong, but my reading of what he is saying is that these are matters upon which the Trustee can exercise some discretion.

I think that's why Kevin is suggesting that you talk to the trust deed company directly to try to put a solution in place that is fair and workable for all involved.

Hi Hel34

Unfortunately we don't have definitive answer for you, as all trustees will treat this matter differently.

Julie

I appreciate all the replies and I know you certainly don't want me to take your advice as gospel either, as in me saying to the trustee "well I was told....". So I understand you can't be specific as such. One final question though (I think!). When is the best time to approach the trustee? The three years is up October 2011.

Hello Hel34,

I'd suggest that you wait six to nine months from now to see what happens. I'm not sure there is much reason to have faith in any financial forecasters at the moment.