Hello ayrlad and welcome to the forum.

It sounds as though your trustee is resigning from your trust deed meaning that you'll once again become directly responsible for dealing with your debts. You may wish to double check with your trustee that they're not discharging you from your debts.

If you haven't been discharged from your debts, you'll probably want to find a new way to deal with the debts. Which way is going to be best for you to do this will depend upon your circumstances.

What's changed in your circumstances that has left you unable to make the trust deed payments?

How much do you owe to your creditors?

Do you own any significant assets, like a home, or a car worth more than £3,000 for example?

Hi thank you 🙂

I lost my job just over a year into my trust deed, my wife has a car but I doubt its worth more than £ 3000 , we do own our home and there`s a bit of equity maybe around £ 8000 , however due to our mortgage arrears the have issued us with a " calling up of security " I think was the term ,I don't know if this makes a difference , we are currently in discussions with them to enter into a repayment plan to pay off the arrears , they have been quite understanding to be fair

Sounds like you've been very unfortunate, ayrlad. Are you still out of work then? Is your wife working and able to pay anything to help you out?

The best way forward will depend on quite a few things. If there is equity in your home then your situation becomes a bit more complex and I would advise you to get in touch directly, either with us by clicking through via the contact button or with a money adviser via your local advice agency. Your options can then be assessed properly.

Hi ayrlad

If your trustee seeks and receives his discharge, it puts you back in the position you were in before you signed the Trust Deed.

Creditors will be notified of the discharge and are advised that you are no longer protected by the Trust Deed. As a result they can commence recovery action for the debts.

The position with the property complicated things as creditors will eventually start action to recover the debts and may resort to bankruptcy as a last resort.

Mark

thank you Mark , this is what I thought would happen, what I`m unclear of is why my trustee is not seeking to release the equity in my property, should they not be dealing with this issue , it seems to me they are happy to take there £ 3000 and then wash there hands of the whole situation, is that fair particularly on my creditors ?

Hi ayrlad.

They may have concluded that this isn't in the best interests of your creditors.

There would be a lot of work involved in selling your home, and even more if you obstructed the process. That would add costs, on top of the selling costs that would also be involved.

Do you have the means to release the equity without selling the home?

Hi ayrlad,

When you say your property has around £8,000 of equity has this been confirmed by obtaining an up to date valuation and redemption figure?

Your Trustee may have established that your property doesn't have a suitable amount of equity to justify the sale of it. As TDA has pointed out there are a lot of factors to consider when looking at selling a property.

With regards to your property, as a calling up notice has been issued are you happy to continue living in the property? I know this seems like an odd question but sometimes people are burdened with a property which they no longer wish to live in for various reasons but feel trapped and there is no way out.

good morning TDA , no unfortunately I have no means of raising funds to release the equity with selling up , and I`m not even sure if I would be allowed to sell now that my mortgage company has issued a calling up notice .

Hi Kevin , yes we would like to continue to live here, the value of the property was set out at the beginning of my trust deed, the trustee made a big deal of this figure not changing and being used at the end to determine the equity I had to find .

If my trustee feels that the cost he would incur selling the property would out way the equity realised by the sale does this mean that I would need to sell my house on my own to raise money for my creditors ?

Hi ayrlad

From your posts, if the Trustee is discharged then mortgage company can repossess the property and the Trustee is discharged will have no input on this.

You could try and deal with the property yourself either by an agreement to repay the arrears or try and take control of the sale yourself with the agreement of the mortgage company. However whatever you decide, the unsecured creditors are more than likely to come back at some point and seek payment of the debts.

Mark