Hello robbo66 and welcome to the trust deed forum. I'm sorry to hear about the concerns your sister and yourself are experiencing.

When your sister signed the trust deed her assets "vested" in her Trustee. That means that if there is equity in her house and/or she has investments like an ISA then it would normally need to be realised one way or another to help repay her creditors.

Of course, this all should have been made clear to her prior to her deciding whether or not a trust deed suited her circumstances.

How much is she paying into the trust deed each month?

How much is in the ISA?

How much equity is there in the home (the value of the home minus the mortgage)?

Hopefully we'll have some thoughts to share with you/her if you could provide those details for us.

Hi robbo66

Could you confirm if a valuation was carried out at the start. Also does she have anything in writing re the property.

When was the most recent valuation carried out? Also what was the total debt?

Mark

Hi mark the first valuation was done in 2006 but carington dean valued two years ago they valued the house at 110 thousand but never came to the property to do a proper valuation my sister said that she got the written valuation from them but the Halifax who her mortgage is with say the valuation is only 73 thousand.

Hi my sister had a total debit of 55thousand and she was told she would have to release the equity in the house but the have already taking the money out of her isa and had it closed they took it all the value was 8500 which the have withdrawn she pays them a total 0f £260 per month but the valuations Dont mach up with her mortgage provider they told her the value was 73 thousand while carington dean quoted 110 thousand without looking at the property.

she has also payed over 6000 to all clear finance who say they cant find any record of payments it was this company that recommended carington dean

If the Halifax told your sister the property is only worth £73000 then she should tell her Trustee that and get a more up-to-date valuation.

Hopefully that would come back lower than £110000 and she would have to pay less for the equity. I don't own any property so didn't have to deal with this in my Trust Deed, but I'd guess that a remortgage is almost impossible and as you say asking her to borrow £30000 from faimly is totally unrealistic.

Does she have any bank statements that can prove the payments to clear finance, copy them and highlight the payments and then send them into carrington dean, also any previous details of the original trust deed as to anything agreed and any other payments sents, if all these are photo copied you can keep hold of the originals. Send them via recorded mail and hopefully it can all be sorted out.

Hi robbo66

As discussed above, on signing a Trust Deed an individual is effectively weighing up assets against debts. The position with the ISA, contribution, equity etc should have been made absolutely clear at the start. This position should also have been made clear in writing before she signed anything.

I think she needs to see exactly what was agreed at the start re equity and have a further full walk through valuation carried out. It should be stated that the valuation is for trust deed purposes and then the figure should be compared to the redemption figure for the mortgage.

Mark

thanks for all your help but i made a telephone call to the accountancy in bankruptcy and there is nothing she can do as i was told that once she signed the agreement she basically gave them full control of her financial affairs so i advice people thinking about a trust deed to look very very hard at other options.

Hi robbo66.

That's not necessarily the full picture. When it comes to assets and how they'll be handled the exact content of the trust deed signed is relevant (they're not all the same). It's worthwhile to re-read Mark's comments in connection to this.

Having said that, a trust deed may not be appropriate for some people who have significant assets which they're not prepared to use to help deal with the debts. The debt arrangement scheme may be more appropriate in some circumstances for example, provided that the debts can be paid back fully over a realistic period of time.