so dose that mean i should go to maybe a Citizens advice to do my bankruptcy rather than the firm my husband is going to to the trust deed with? would this afect my house diffrently as the firm told me if i paid them £500 they would keep my house out

Hi girl10.

How much has your husband been informed that his trust deed contribution would be?

Has he checked his contract of employment about trust deeds and insolvency?

Sorry to go back to this, but the minimum you would normally be entitled to with tax credits is around £45 pm and given the childcare costs you have I'd have thought you could be entitled to more than this. It might be worth double-checking this as it may make a difference to your affordability once the overpayment is taken out of the calculation.

Hi, i went to see the trust deed compnay on friday morning when all my money was counted up they told me i was -£20 a month and my husband had to pay £180 a month to a trust deed and i had to pay £80 a month into my bankruptcy plus 2 x £500 for my house for 3 years, is this ok?

Hi girl10.

So you've been informed that your disposable income is negative (by £20) but despite this they want you to pay £80 per month (that they know you haven't got) for their bankruptcy services?

Did your husband's disposable income amount to £180 per month when you went through the numbers?

If it does, there's no need for your husband to pay £500 in lieu of equity for the house while doing a trust deed. Lots of trust deed companies including those on this forum do the same thing without charging the £500.

girl10, please speak to one of the experts on here. if you have 22000 negative equity in your home, what is there to protect?

Hi, with reference to girl10's point about the 500 each to keep the house out of it i know with reading a lot of the posts previously that there is a lot of companies that dont charge the 500 on a trust deed but is it the same with sequestration or does the 500 always have to be paid to keep any future equity out of the scenario?
many thanks

Hi, i know i am running out of time as i got a Sheriffs officers letter 2 weeks ago now but i dont know what to do, should i sign with this company yes even with on money left i still have to pay £80 a month and my husband is £180 total payment £260, they Recommended bankruptcy for both of us so we would pay £160 a month but this isnt an option as my husband would lose his job, as he has aked and they said they would know because of his tax code. They said if i go through them i will know my set payments before i sign and if i go through someone else i will have to sign and then they will fix my payments and it could be higher? plus the £500 each for the house would be added in

Hi girl10.

I don't think that anyone here is going to tell you what decisions to make based upon the information in a forum thread alone. You're obviously going to have to weigh up the situation and make the final decision.

For my part I think it's strange that having calculated that you have negative disposable income of £20 per month that it has been suggested that you pay £80 per month for bankruptcy by the people that did that calculation.

If the same calculation of disposable income were made as a result of a direct application for bankruptcy you'd be paying nothing other than the £100 application fee unless something improved later.

I can see the advantage of knowing what your monthly payment would be... but the benefit of that crumbles when you also know that it doesn't appear to be affordable.

Thank you for your help, if i went direct how would i do this? and would this be based on my salary alone, would i still be able to keep my car its not in my name need it to work and would my house be ok, would i still need to pay the £500 to protect my house and if not would i loose my house, the company i spoke to said i could keep my car and my house would be ok if i paid the £500 to them thats why i was thinking of going with them

Hi girl10.

There are a number of different "routes" to bankruptcy. If you review the relevant pages on this site (bankruptcy, LILA sequestration and Certificate for Sequestration) and the website of the Accountant in Bankruptcy you'll be able to establish which is appropriate for you. The AIB also have a helpline number on their site.

Your household circumstances will be reviewed in bankruptcy.

If you have car expenses and the car is necessary to get to work these should be allowed for.

Whether or not you'd need to pay the £500 is a bit of a lottery; it depends upon the policy of the Trustee that your case is assigned to if the AIB outsources the work.

If there is no equity in your property then there is no reason why you should lose your house regardless of whether you are asked to pay the £500 or not.

Hi girl10

Could you clarify the comment about the tax code. I'm not sure how a tax code would change in Scotland after signing a Trust Deed or going bankrupt. Please be very careful with the advice this company are giving you.

Mark