Can I also ask how any occupational pension scheme would be impacted - I do not contribute towards it, but can do.

Also, should I take part in an employee share save scheme, how would that be impacted.

My work has two - one where they match up to £25.00 a month and one which gives you the option to buy shares at a pre-determined price, rather than the current price to the value of the amount saved.

Both are restricted as to when and if you can cash in.

Welcome to the forum psm0001.

If you sign a trust deed your share of any equity in the home will vest in your trustee who will need to realise that amount for the benefit of your creditors.

If you have no way to raise this money, and you're not prepared to sell the house, it sounds as though a trust deed would be unsuitable for you.

With that in mind you may wish to consider the debt arrangement scheme where assets aren't taken into account. It works in a similar way to your Stepchange debt management plan, but will give you (especially as a homeowner) far more protection and certainty.

Have Stepchange mentioned the advantages of DAS to you?

Thanks for the fast reply. I always thought a DAS was just the same as a DMP, but different terminology.

My DMP has only been on the go for a few months but will last for over ten years, assuming my payments stay the same and interest and charges are frozen. 10 plus years is a long time.

Hi psm0001.

They're really quite different, Stepchange should have told you that so you could have made an informed choice.

A debt management plan may or may not result in interest and charges stopping. An accepted DAS will involve interest and charges stopping.

An accepted debt arrangement scheme will prevent your creditors from taking legal action that might affect you and your home. A DMP does not prevent your creditors from legal action.

I'd look into getting swapped over.

Thank you again.

I have since looked this up and it says as long as te debt is paid in a reasonable time.

Is ten years a reasonable time, as I am assuming my monthly payments would remain the same, since both are based on affordability.

Hi psm0001.

10 years is often seen as the limit.

Once again. Thanks.

Hi psm0001,

As TDA has advised due to the asset and equity position it would appear that a Trust Deed is not an appropriate solution for you.

The Debt Arrangement Scheme timescale is determined by the amount you can pay per month. I realise that 10 years is a long timescale but if your able to increase your contributions or in the future your salary increases etc then you can pay more and reduce the timescale.

You can use a voluntary sector organisation who will be able to set your DAS up for free of charge for you. If you use a private company then there will be fees associated in doing this for you.

Hi
Based on David's response above, as I have an outstanding mortgage of £168K and TD company have carried out a valuation on my house as £190K have I been advised incorrectly to enter into a TD?

Thanks.

Hi Domino99.

Not necessarily. So long as you are aware of your obligations and have a realistic plan to deal with the equity that might not be the case.

Have you been made fully aware of what your equity responsibilities will be?

Do you have a realistic plan to meet them?

Hi TDA
Thanks for your reply.
I am still waiting for the TD documentation to sign so not entirely sure what they are proposing. All I know at this point is that they are proposing a 5 year TD which I'm hoping then takes into consideration the equity up front. Does that sound about right?

Thanks.

Hello Domino99.

I wouldn't like to say. I'd suggest you proceed with caution.

I think this goes back to the discussion about face-to-face meetings on your previous thread at http://www.trust-deed.co.uk/forum/topic.asp?TOPIC_ID=3722.

For such an important issue total clarity is so important. Face-to-face meetings play a massive role in achieving that clarity.

Hi Domino99

The position with the property alone should be cause for concern, if you are unsure how this will be dealt with.

You should have a face to face meeting with an IP firm and make sure the equity position is absolutely clarified to ensure there is a clear way forward.

Mark

Hi Domino99,

It would appear that you have £22,000 of equity within your property. By entering into a Trust Deed you will need to come to an agreement on how this will be dealt with and pay this over to your Trustee.

If you are looking to enter into a 5 year Trust Deed, I'm assuming the final 2 years of this will be to pay over the equity in your property. If you are not able to pay over the equity in your property then there is a chance that this may need to be sold. If for example you need to pay over £22,000 in 24 months this is a payment of £916.66.

You need to be 100% confident that you understand what will happen to your property, the risks involved and how the equity in your property will be managed and paid over. You should have this in writing before proceeding.

As others have said, you need to proceed with caution. A phone call to the company to clarify should be the first step. This is one of the reasons that a face to face meeting is always good especially when dealing with peoples properties.