Hi scared11

At £33k, I think you need to consider a formal option, possibly DAS. Payplan will possibly suggest a Debt Management Plan, however DAS would certainly appear to be more secure as it guarantees interest being frozen, whereas the DMP does not.

Re your questions, both are different debt relief options (Trust Deed & Sequestration) Could you advise me what your job is and exactly what the contract says. In normal circumstances, there is no need to contact employers.

There is also no need to contact your husband in a Trust Deed, although I always think its better to be up front with these things.

In summary, I think you need to look at the 2 options above. Depending on employment contract and possible equity, this may guide you to one or the other.

Please keep us posted on matters and hopefully provide more info, to allow us to assist.

Regards

Mark

Thanks for your reply. I have just had a lok at my contract (I'm a teacher), and can't see where it says anything about termination of contract for this reason, actually. I know it says it on newer contracts issued to my self-employed staff for services, so maybe that's where I read that.
I am not witholding this situation from my husband - I just don't want him to have to get involved in paying anything towards my debts.
SO what is involved in DAS? I am feeling a bit dizzy this morning, reeling perhaps from the realisation of the dire situation I have got myself into, and am finding it difficult to take in all of the options, so maybe a plain-speaking descpription would help me.
Thanks again.

Hi scared11

I am dealing with a few teachers old and new (contracts) and am unaware of any termination clauses on insolvency. It would be a wee bit unusual, but would be interested to see if there is anything in the newer contract.

I appreciate the position re your husband. There's no requirement to contact him, but all household income needs to be taken into account, although he obviously has his own costs, expenses etc.

Very generally DAS option freezes interest, charges etc etc but you need to pay full debt over a period of time. The Trust Deed is a 3 year arrangement which freezes interest & guarantees a % of the debt to be written off at the end of the period.

Mark

Hi scared11.

One key piece of information in comparing the suitability of the Debt Arrangement Scheme (DAS) to a trust deed will be the situation regarding your home.

Could you let us know how much you believe the home is worth and how much you owe on any mortgage(s)?

DAS excludes the home but a trust deed would include releasing the value of any equity that exists.

Thanks Mark - I'm still a bit unsure as to which would be better for me (I am accepting that I will probably have to enter into some sort of arrangement now).
My house was valued at £145000 last Spring, and at last check, there was still £104000 owing on it. I'm not sure how willing my lener would be about releasing equity, as they say they have to ensure that the mortgage is still for 85% of the value.
I take it this will spoil any chances I have when my current rate deal comes to an end too?

Thanks

Hi scared11

Remortgaging is certainly difficult at present in any circumstances and as you say, if they are looking to retain the 85% LTV, it may be unlikely.

If it's any consolation, in the TD scenario, the valuation is likely to be less than Estate Agent valuations and assuming its jointly owned, then it only deals with half of any equity.

In the DAS option, then the property is excluded from the process, although they will require payment in full.

Not sure if the above helps in any way.

Mark

Argh it's all just so difficult to know. The mortgage is not joint, as I owned the house before I met my husband, and we didn't want to apply for a joint mortgage (for a number of reasons), mainly because we wanted to move into a place that was "ours" eventually. But that looks quite unlikely now.
Also, a quick (and probably stupid) question, as they are about to call.... it was an English girl I spoke to yesterday - will she be "up" on Scottish arrangements?

Hi scared11

It's difficult to say, but probably not!

Mark

Ok, so I spent a long time on the phone with Payplan. The guy was just taking details of things, and was actually very nice (the mortgage lady had me in tears yesterday). Still a bit anxious, but will try and stay calm until they call me back. He said that he just took the information from me, and someone else looked over it and would call me to advise what to do next. Hope I can get some sleep tonight now...

Now that I'm feeling a bit more calm and in control, I agree that the DAS seems to be the sensible way ahead. The thought of losing my house terrifies me, but I still feel a responsibility to pay what I owe. Am I right in thinking that I don't have to go with Payplan, as I have had a look at their site, and they only offer the DMP. I'd prefer something a bit more solid, if that makes sense? If I don't go with them, I take it I'd have to go through the whole process again with someone else? I'm quite happy to do that, and (without wishing to sound bad) would prefer someone in Scotland dealing with this - the guy on the phone didn't realise that we pay our water rates in with our council tax, which worried me a bit.

Hi scared11

theres no obligation to go with them.
Take your time and look around. Das certainly seems the better option.

Mark

Hi scared11.

A DAS approved money advisor will be able to help you with setting up the debt arrangement scheme. Those working within the Citizens Advice Bureau or your Local Authority will set up the debt arrangement scheme for you without any fee normally.

A number of trust deed companies now employ DAS approved money advisors as well and offer the debt arrangement scheme on a commercial basis. George White who features on this site is a DAS approved money advisor working within a trust deed provider for example.

There's a bit more about the option on this site at:

http://www.trust-deed.co.uk/debtarrangementscheme.php

and/

http://www.trust-deed.co.uk/dasapprovedmoneyadviser.php