Hi Steve,

I am currently one year into a 5 year trust deed. Unfortunately it is not with one of the 4 firms on here. I only found this forum AFTER signing up.... My advice would be to most definitely go with one of the firms on here, they appear to be the most honest and know what they're doing!!
Good luck 🙂

Hi Steve027

I have no idea what forum you are referring to, but as I don't post on any other forums then I guess it must just be an old thread from this one.

The £500 payment you refer to was something that was standard fare in trust deeds previously, and still is with many firms. As trust deed assistant says though, it is not something we look for any longer and nor do the firms represented by the other experts on here. At the end of the day, you have the choice as to whether to use a firm that looks for this money or not - but it is very unlikely that you would affect the chances of your trust deed being accepted if you didn't pay it.

Regarding your loans - it is very easy to check whether they are secured or not. If they are not secured then they would have to rank alongside your other debts in a trust deed.

In terms of choosing between sequestration and trust deed, in many ways they are very similar at present. I tend to find that most people prefer a trust deed rather than bankruptcy, as it is a more consensual process with creditors and there is less stigma attached. And whilst you might not want to take any further credit, you may wish to remortgage onto a better deal at some point, so a trust deed may mean less problems in this regard once you are discharged.

Is it a 3-year term that KPMG are recommending? Have they worked out how much you can afford to pay each month and do you feel it is reasonably affordable?

Hi Kevin thanks for the reply. Yeah it was an old thread on this forum I seen discussing the £500 charge and another poster had commented they had a trust fund with your company, not necessarily yourself. The term KPMG are looking at is between 3 and 5 years and was working out at between £150 and £160 a month. This would be ideal although the lower the better. I was called today from KPMG and they told me they did an area search and my property had around £33 k negative equity in it. Surely paying £500 would seem irrelivent given the fact my home will never raise by that much value in 3 years. The trust deed is my preferred option if it's available for me but if it's bankruptcy so be it. I know a few people who are in a much better place now 5 or 10 years after being sequestrated

I would suggest that "between 3 and 5 years" can be translated into simply "5 years", Steve027. If you can only reasonably afford around £150- £160pm then a trust deed would have to be extended past the usual 3-year term in order to get accepted by sufficient number of your creditors.

If you are looking at a 5-year term then you may well wish to consider sequestration as an alternative given that it is only 3 years.

Would I still lose house if I opted for sequestration given the valuation ?

Is sequestration not only 12 months? I really don't know to much bout this but a few other things online only mention a year.

Hi Steve027,

KPMG should have sat down with you and discussed all of your options with you so that you have a good understanding of a Trust Deed and also Sequestration.

Sequestration lasts for one year after which you are automatically discharged however you continue to make monthly payments. As creditors are not required to accept Sequestration there is no requirement to meet a minimum criteria by paying a certain amount or for a certain timescale.

It would still be the same scenario regarding the equity in your property under a Sequestration as it would in a Trust Deed - no equity no risk to your property. Often people believe that if they are declared bankrupt they automatically lose their home but that isn't the case. That's why we always say a good knowledgable advisor should be able to take you through everything without making it sound complicated and confusing.

Thanks David. I'm still in the early stages of being briefed on all matters. The woman on fone seems certain about the trust deed being the best option and if that fails says then we would go down sequestration route. But as Kevin says I be be more worth while looking at sequestration. I will certainly shop about and get advice from as many sources as I can but although I don't wanna rush into anything I would rather start the ball rolling 1 way or another

I can understand that, Steve027. At the end of the day, it is your decision which route you choose though, regardless of what the lady on the phone thinks. You should really be informed of all options and then would be in a position to decide for yourself.

Has the forum's experience been that those who have been in a Trust Deed have had greater access to mortgage finance after release compared to those who have been previously sequestrated?

That's a difficult one to answer, Grace - probably need to ask a mortgage broker really.

I had a trust deed with KPMG and I haven't got a bad word to say about them, from beginning to end. My TD ended in 2011.

Steve, I must admit I went with KPMG last year and had nothing but hassle, they were very helpful, nice attentive , but after I signed, they never returned, calls, logged my calls. I ended up contacting Blair Nimmo himself , it was a complete nightmare. My advice would be to steer clear.