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07/05/2015 2:16 pm
I am currently in a DAS with approx. £15,000 debt being paid over 4 years (currently 6 months into it). My monthly repayments are £400 which is completely unaffordable to me. When I took out the DAS they took both my husbands and my income and expenditure to account but my husband is refusing to give me any money towards my DAS from his earning as he has his own credit cards to pay for...
I am self employed and some month I may get £150 pcm and other month £500pcm and some months I may make no commission at all. the only money paid into my account is my child benefit which I use to pay half of my DAS.
We do own our own home on a shared equity. We own 60% and the housing own 40%. We purchased the house at £123,00 but now only valued at £107,000 with £64,000 due on mortgage there is therefore no equity in the property. I have no other assets. am of course concerned that if I choose to move home which I am planning to do, what will happen to the house? Can it be repossessed as my husband will not want this to happen as its security for our children. Perhaps it is better for us to sell our house BEFORE I sign up for a trust deed? My husband will then be able to take out a new mortgage in his name only and I will have nothing to do with it. I don't want to make any rash decisions. Any advice appreciated
07/05/2015 4:05 pm
Hi tracephjosey,
Am I right in saying that with an income ranging from zero, £150 pcm to £500 pcm you are trying to support a payment of £400 per month to a DAS? Did you meet with a suitably qualified advisor to set up your DAS?
A Trust Deed, DAS and Sequestration should all be based on affordability and based on this I can't see how you could afford to sustain a payment of £400 per month towards a DAS for 4 years.
To be suitable for a Trust Deed you need to be in employment and have an income sufficient enough that you can afford to pay a payment which your creditors are prepared to accept. As the creditors need to accept the proposal then you would be expected to make a minimum payment per month. This could be in the region of £130 per month but this is just a guide so you have an idea of what you could be asked to pay.
Based on your income and budget I think it may be difficult for you to support a suitable payment in a Trust Deed but without knowing a full breakdown of our financial situation it's hard for me to say.
An alternative to a Trust Deed is Sequestration. This is based on affordability and if you can only afford to pay £50 per month then this is all you would pay for a 48 month period.
In both a Trust Deed and Sequestration your property would be looked at to establish if it has any available equity. From what you say it would appear that the property doesn't have any available equity so it wouldn't be put at risk. The property would only be repossessed if the mortgage payment was not maintained. If you wanted to keep the house you can keep the house.
I think the best thing to do is sit down with a qualified advisor to discuss your full financial situation and to plan the best way forward. The positive thing is that you do have alternatives to paying £400 per month towards a DAS.
David is not currently posting in the Trust-Deed.co.uk forum
08/05/2015 11:06 am
Welcome to the forum, tracephjosey.
It certainly sounds like you need to examine your options again, as the figures certainly look unaffordable. However, it is very difficult to do this effectively on a forum as the calculations regarding what you should/could pay can get quite complicated. I'd encourage you to seek detailed advice, whether from an expert on here or from an approved money adviser in an advice agency.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
08/05/2015 1:23 pm
Over 4 years, you would pay back £19,200 which appears to be considerably over the original debt.
From the information provided, it doesn't appear to be the best option available, particularly if your income fluctuates. The basis of any decent proposal is to allow for you to make an ongoing affordable payment over a specific period if time. I don't think DAS achieves this. If the period was greater and the amound reduced, it may be workable, however you should certainly speak to someone to at least review what other options are available.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
