Welcome to the forum TMDH. Sorry to hear that you are facing another 2 years in your Trust Deed. Is there a particular reason that they have given you?

Hi Kevin, the letter I have received said that as I had equity in my house now, they were going to put a full and final offer to my creditors to extend the trust deed for 2 years. By doing that they would have an extra £3600 to offer to my creditors. I feel really down now as I was thinking it was coming too an end and I could put it behind me and move on.

Hi TMDH.

Trust deeds typically include two types of contribution:

1 - Contributions from income for a set period of time (5 years in your case).

2 - Contributions related to any assets owned (which aren't to be sold).

These two are separate.

While your paperwork set out 60 months of income contributions, I'm sure there will be reference in the agreement to assets also. This might be assets that you owned at the start of the trust deed, or could be assets that became yours during the trust deed.

We have no way of knowing the content of your agreement, or whether £3600 is an appropriate sum in accordance with this agreement and your circumstances, but in principle it's not uncommon for trust deeds to be extended to enable the value of owned assets to be collected for the benefit of creditors (which many people prefer to having to sell that asset, which might be the alternative quicker option to complete the arrangement).

Hi, thanks for your all your help. It just really confusing and I thought that when it said 60 monthly payments that would be me. Naive of me I know. On another note what would my chances of getting a loan while I'm still in a trust deed, it's just that my house needs some big structural work done and I don't have the money to do it. I was looking at the loan companies that give too people with bad credit history. What do you think ?

I don't think they tell you all the facts before entering into a trust deed, they say we can get the interest written off, (which is normally to high anyway), but what the don't tell you, or in my case didn't tell me was at the end off it, if we can get more out off you to pay the interest that we were trying to get written off if you keep paying the agreed amount, then we will find a way to keep you in your trust deed until the full debt is paid back, oh and into the bargain we as an inso km vency company will get paid from what you pay in for our troubles In a way I wish I spoke to my creditors and tried to arranged something with them, then the stress of wage arrestment and bankruptcy would be there, sorry experts rant over, you guys are doing a wonderful job

Hi TMDH.

I think there are two issues here:

1 - It's going to be pretty difficult to get a loan, and the interest rate is likely to be very high if you do.

2 - How will you afford the repayments if all of your spare income is being taken into your trust deed?

Sorry this is a bit negative given the circumstances which must be important to you.

Hi poprey.

I'm always a little uncomfortable with the word "they".

I don't doubt that this was your experience, but there are lots of professionals out there who go out of their way to ensure that their customer has a good understanding of all of the important issues before they make a binding commitment.

"Selling" trust deeds on debt write-off and interest being frozen is also something many professionals avoid. The simple fact is that an agreed trust deed will write off the debt that you cannot afford to repay. Some people will become able to afford to pay back their debts in full, to pay interest, and to pay the fees for their trust deed. That doesn't seem unfair (to me) if they've become in a position to do so. I do think people should understand this when they start though.

Sorry TDA, I just think its a bit unfair that TMDH thought the 5 years were done, then boom here is another 2 years because there is equity in the house, its money that TMDH hasn't got access to, wages stay the same and still in the same position as when starting the trust deed, like I said and I don't know if it wrong or silly off me to think like this, but I wish I came to a personal agreement with my creditors, instead of worrying if you send an extra £5 ( I know a bit extreme but you know what I am talking about), again sorry for the rant,

I'm not in any way saying that this has happened to TMDH poprey, but every adviser associated with this website will have had clients that they explained EVERYTHING to (in significant detail) who subsequently became confused or who forgot important aspects of what was said.

You can't necessarily assume that because someone has become unsure about something that they haven't been treated properly by their trust deed provider.

Point taken TDA, and I would imagine more people get good from a TD than bad, Thanks TDA.