Morning JohnG

are the payday loans in your name only?

Good Morning

Yes the pay day loans for solely in my name.

Thanks

John

It is a tricky situation John. To summarise your options, they are as follows:

1) Negotiate an interest freeze and pay off the new loans at an affordable rate whilst continuing to pay your trust deed.

2) Continue to pay your trust deed and ignore the payday loans. The risk is that one of them could seek to try and recover the debt by taking legal action further down the line.

3) Go bankrupt instead (you would need to get the agreement of your trustee first for this to happen). Risk that your house could be forcibly sold as part of the bankruptcy.

4) Explain the situation to your trustee. They may agree to "resign" as your trustee and terminate your trust deed without discharging you from your debts. You are then in a situation where all options are open to you again. You could possibly try and sign a new trust deed including all debts (though it is possible that creditors may object given the recently failed trust deed, and there is still the issue with the equity in your property to clarify). Alternatively you could possibly enter a DAS and pay all of your debts off over time using your spare disposable income. How much debt is included in your trust deed John? This would determine whether a DAS is likely to be desirable/viable.

Many thanks, Kevin...

No.4 looks favourable to a degree... BUT my (inexperienced) opinion would be surprised I'd get a 2nd bite of the cherry. Howe much is personal circumstance looked at? ie; I had a female that was THE problem and drained me while I tried to keep a happy life.

That drain has now been removed so is there hope that a fresh start could be agreed upon?

(Incidentally, my delay in responding was today is d day on the payday loans and I am balancing being hounded by them and working!)

Thanks again,

John

Hi again John.

There are a couple of pieces of information that would be really useful to be able to help weigh up the options.

The first relates to your existing trust deed and the equity in your home. From the information provided thus far I think Mark and I are concerned that the equity position isn't clear and that there is potentially perhaps already a risk to your home even if you remain in your current trust deed. It would be great if you could contact your trustee to find out exactly what their expectations will be, in connection to the equity, for you to complete and be discharged from your trust deed. If you do this could you let us know the answer?

The second is how much debt was entered into your existing trust deed as Kevin mentioned. This will help to determine whether the debt arrangement scheme might be an option that is open to you and also how it might work for you (especially in terms of how long it would last). This is important because the debt arrangement scheme, unlike a trust deed or bankruptcy, will not take equity in your home into account.

A DAS would be a very good option if it's affordable over a reasonable timescale. You get the security of keeping your home with no risk of losing it. Plus you get the enormous personal satisfaction of knowing that you have paid all your debts in full (albeit with the help of lenders freezing interest payments). You will have a tight belt for some time to come but you will with any of the options open to you just now.

The reaction of your IP to your position will be key to mapping out a future plan - be interesting to know how supportive they will be when your new position has been explained. That will influence them (I guess) as to how committed they will be to work with you after racking up further debt a few months after setting up the PTD. As this forum has shown, your IP can be your best friend or your worst enemy and you will need to find out which one you have!