Notifications
Clear all
Scottish Trust Deed Forum
6
Posts
3
Users
0
Reactions
1,307
Views
Topic starter
24/01/2012 2:29 pm
Hi I have 40k of debt and my husband 25k, we are in rented accomodation as our house wouldnt sell (and had no equity so we had no deposit to buy a house near my work), so had to just put in a tenant in our home and rent near my work as I couldnt handle the commute with a small baby. We also have another house from years ago that again when the market crashed had no equity and couldnt get it sole without making a loss on fees etc which we couldnt afford to do. As such we have two houses which are worth either the same or a little bit less that the mortgages we have on them. Both have long term tenants in them, one makes £200 profit the other makes a loss. The £200 profit per month is put away to cover factor fees, return of deposits, house insurance, repairs etc for the two houses.
we are both in employment but the debt is causing so much stress as we have high rental to pay, ridiculous nursery fees as well as living expenses so it is leaving us both working full time with no money left and behind in our debt payments. I have been off work for 8 weeks with stress and want to leave my job but that will just leave us not being able to afford to live on just my husbands wage. We can afford to live without the debt and could each pay about £300 a month in to a trust deed, our debt is currently £1200 a month. The debt is causing me to be ill hence I am off work which isnt helping matters.
I have not went trust deed as dont want to leave our tenants without a house if they take the houses back, would reduce my stress but the thought of dealing with it all is to much so I am just ignoring everything just now as havent paid any of my creditors this month.
Do you think we would be allowed to go trust deed with two houses? Also is is two seperate trust deeds? The last thing is that I have read that if you owe more than one company 33% of overall debt then they can stop you going trust deed. I owe 4 companies and one of them I owe 38% of my overall debt and this is another reason why I have held back as they may just force me to go bankrupt and I work in finance and would loose my job if this was the case.
Happy to hear anyones view, advice, chat as my head is about to explode with all the what if's
Thank You[:I]
24/01/2012 2:46 pm
Welcome to the trust deed forum trustdeedquery.
I don't think these properties create any issues in terms of trust deeds. There is no equity so there would be no benefit to creditors from selling them. They are also paying for themselves so there is no loss to creditors in terms of your ability to contribute to a trust deed. I'd be interested to hear whether Kevin, Shona and Mark agree.
Like with any property, we'd suggest getting the detail of how they would be handled agreed in advance of signing any trust deeds and confirmed in writing also. That way there is no room for misunderstandings later. It should also allow you to provide your tenants with reassurance (or at least feel that they'll be OK and therefore not feel that they need to be told anything).
Trust deeds are run on an individual basis so a couple would each have their own trust deed if they chose this route. Of course, they'd be co-ordinated to take account of your joint financial affairs.
It is correct that a single creditor owed 38% of your debt total could prevent a trust deed from becoming protected. However, the fact that they can does not mean that they will.
The major creditor organisations make trust deed firms well aware in advance of what they will and will not accept so you'd be able to get a pretty high level of assurance on that side of things in advance as well.
If you'd like to share the name of this creditor the experts may be able to provide you with some more specific reassurance or feedback.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
24/01/2012 3:05 pm
Hi trustdeedquery
I understand it can all seem complicated, however as TDA says I don't see the properties being an issue whatsoever. The trust deed would also give you the option of handing the keys back to the trustee if the running of the 2 houses became too much.
Please don't get too worried about this 1/3rd thing as the trust deed acceptance all work to a formula. We can usually tell beforehand if the criteria for acceptance has been me.
Best idea is to sit down and discuss all the options and points. Then take a step back and see what best suits. That way you have a clear way forward, taking away all the unknowns.
Hope this helps
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
24/01/2012 10:57 pm
Thanks Mark and trust deed asst. for your input. I will be speaking to my husband this weekend about how we move forward and he has been a challenge to even get him to consider receiving advice on options as he thinks it's our mess and we should sort it. I do agree but there comes a point when I will end up quiting my job and loosing the houses, having to wonder who will accept us as tenants and this will all impact the kids so I think he's coming round to idea of getting advice now and realising that we will still be paying something of the debt we have run up and it will still be a difficult but managable 3 years with above all things one payment rather than the 8 companies that I need to organise payment for between us. People have told me about adverts and companies who deal in trust deed, I will read through this site properly to gain a better understanding and how I start the process and how long it takes, what I need etc
24/01/2012 11:07 pm
Hi trustdeedquery
It's always the best way. Look at all the options, ask endless questions and ensure there are no 'might be' ' should be' answers. Ensure it is all confirmed in writing and honestly the way forward will be a lot easier.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
25/01/2012 12:13 am
Hi trustdeedquery.
Your husband isn't on his own. Possibly the hardest step to take when debt is causing financial problems is to reach out for advice.
A couple of years ago a major accountancy firm published some research that reported it took people an average of nine months to move from the point at which they realised that their debts were no longer manageable, to the point at which they asked for some advice and help.
The shame is that during this intervening period things tend to get worse, and there is therefore a risk that the available measures to resolve the situation will become fewer in choice and more severe in nature.
Of course, taking advice wouldn't commit your husband to anything. It would just give him the information needed to think through the options and make an educated decision whenever he is ready to.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
