Welcome to the trust deed forum starbucks123.

It's best to wait and see what Kevin or Paul have to add to this topic when they next visit the forum, but I don't think the inhibition would be an issue with a trust deed. I think it would have to be lifted once the debt has been "written off" when your friend completes the trust deed and gets discharged.

If the loan is secured against the property, they'll need to keep repaying the loan in full or their home will become at risk of repossession. A secured loan is no different to a mortgage in this respect.

Hi Starbucks123. Amy is right on both counts.

The debt that is owed to the creditor with the inhibition would be included in a Trust Deed and your friend's liability would be discharged on completion. The inhibition would therefore be pretty meaningless and as there is no debt remaining to be paid and would eventually just expire 5 years after it was last renewed.

Thank you for replying.

Thats really good to know I,ll pass on this message.

thanks.

Morning

The inhibition prevents you from selling a property or incurring any further borrowing without the permission of the inhibiting creditor. This gives creditor some protection.

In practice, the inhibition will stay on for the duration of the 5 years but the creditor would not be able to renew it once it expires.

If the creditor is unsecured then yes, the debt would be included in the trust deed and the balance written off at the end of the process. If it is secured on the property then the creditor will rely on their security and this would not be written off until it is settled.

P