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Scottish Trust Deed Forum
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Topic starter
24/02/2009 2:45 pm
I am looking for some advice to help get me out the mess I am currently in,. Over the past 4 years I have run up approximately ?ú30,000 of debt - have various missed payments on cards and in arrangement with few companies, have missed mortgage payments recently but company have agreed to capitalise arrears onto mortgage. Outstanding mortgage is ?ú119000 and house is worth ?ú205000 however because of poor credit history can't get re-mortgage or secured loan. All debt in my name apart from one credit card in my husband's name. I am considering either a debt management plan or a trust deed but have heard varying stories about trust deeds and unsure how it would affect my house - very keen not to lose my house and also for my husband not to be affected - would I need to give up any equity from my house and how would this work if I can't get a re-mortgage
03/03/2009 10:32 am
Hi susand1.
You are certainly asking the right questions - although I'm afraid the answers might not be what you want to hear.
You would undoubtedly have to release some equity from your house under a trust deed. Even if you own your home jointly with your husband, your share of the equity would come to around ?ú40k using these figures. I would therefore suggest a trust deed is not right for you because this figure is higher than your debts. In a trust deed you would be expected to realise as much of the equity as would be necessary to pay off your creditors in full as well as the trustees fee. So even if you were able to do this, for example by remortgaging which is unlikely anyway, a trust deed would work out more expensive than just paying off your debts in full.
A debt management plan, possibly under the Debt Arrangement Scheme, would seem to be your only viable option at present.
Hope this helps.
Kevin
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
