Hi stephenm1982

Welcome to the forum.

You stated in your opening paragraph that you are happy with the service and everything has been explained. You then ask what will happen re your car and the equity?

I think these are critical points. As it stands, you sign the Trust Deed today and in 3 years the trustee may look for the equity in the car, he may also have the property valued in 2014 and look for the equity. I dont know if this will happen, but the point is neither do you.

I think you need to have these points absolutely clarified and I would be concerned if any firm proceeded without doing this.

I can only suggest sitting down face to face, running through everything, have it all confirmed in writing and then decide what best suits.

Mark

Hello stephenm1982.

I think that there is a consensus around this site that a face-to-face meeting in advance of signing a trust deed is a very good idea.

As Mark has pointed out, it gives you the chance to ask exactly how the equity in your home, car or other assets will be dealt with. This is doubly important as different firms handle these things in slightly different ways, so there is no way to know exactly what will happen unless you enquire in detail with the actual firm you are considering using.

There are other things as well. For example, what will happen if you earn overtime or a bonus or commission? Will you be able to keep a proportion of it or will it all be paid into the trust deed?

We'd also advise people to get confirmation of the matters discussed in writing before signing the trust deed.

Many of the issues that have been raised in the forum in the past might have been avoided had a meeting been held, lots of questions asked, and written confirmation received.

Best wishes however you choose to proceed and please let us know if you have further questions.

Hi Stephen,

I would seriously consider signing your Trust Deed with this company. I was initially very happy with the service provided by WA too - that was until I was a year into my TD - if you read back on my previous posts you will see why. Did you initially call a debt helpline and were advised to go with WA? These people are sales people and make Trust Deeds sound very appealing, with your monthly payment being low, etc... trust me, it doesn't stay low for long when with WA! I'm not saying a Trust Deed wasn't the right thing for me to do but I just wish I had done some research with regards to the companies before signing up to one with WA. The experts on here all know there stuff and seem to be very reasonable and understanding (something WA are not) when it comes to Trust Deeds. Maybe you should consider going with one of them instead?

Thanks all for your responses!

Mark, I have discussed with WA the car and the mortgage, initially, however was bogged down with the info that I was unsure of what all this meant. I will ask my 'handler' again for clarification before signing.

TDA, I am a teacher and therefore overtime, bonuses etc... do not affect me. however, you are right regarding written confirmation - which I will ask for.

DM29 - unsure of why WA will be able to increase my payments, if they have worked it out in terms of affordability - surelt this can only increase, if my salary increases? Which it will - and I will be absolutely telling them about, incase it adds to the term - which I do not want.

All, I am concerned about everything u have all discussed and will be sure to clarify before proceeding as it is such a major thing to commit to. Albeit I am now unsure of what stage I am at. I have signed an authority consent form, gave details of creditors etc... and paid 1 lump sum (prob to introducer, as stated by DM29).

Will keep you updated and thank you all sooo much for your contribution - really value the insights. TDA and Mark, how would you start the process with one of the companies on here (if I am able to), I do not believe I am fully committed yet and how long would the process take as I have cancelled d/d and s/o's to companies this month by the request of WA.

Thanks
Ste

Hi stephenm1982.

Unless you have signed the trust deed itself you're not bound to proceed with any particular provider.

If you wanted a comparison Mark, Kevin and Shona are available via contact forms on their profile pages.

The process can really move as fast as you need it to, especially as I'd imagine that you'll now be on top of details like your debts, income and expenditure.

Stephen

I read your post on Friday ÔÇô we have been trying to contact you by phone to chat through the points you've raised. I've also posted some more general information below that I hope you will find useful.

I was pleased to see you'd been happy with our initial service. Hopefully we can put your mind at ease on the further points you make so that you can proceed with your Trust Deed.

If you would like a face to face meeting we'd be more than happy to meet up. Generally we find a lot of clients are happy with a telephone based service (and, as you say, the ÔÇ£anonymityÔÇØ that brings), but the option of a meeting is always available for those that prefer.

You ask about the treatment of you car, your home and your also whether your payments will increase.

Car - generally you can keep a reasonable car for the duration of your Trust Deed and it will be revalued at the end of your Trust Deed. Unless the car is worth more than £3,000 at that point you won't have an issue. We will of course chat through the exact figures before you sign your Trust Deed.

Home - shared equity is fairly common and poses no unusual problems for Trust Deeds. Before you sign your trust deed we will have your house independently valued and obtain redemption figures from your mortgage lenders. This will allow us to say exactly how much, if any, equity there is in your property. If, as you say, there is no equity then you would only have to pay a nominal payment of £500 (this level is set by the Accountant in Bankruptcy) and there is no revaluation or anything required at the end of your Trust Deed.

Contributions - you are completely correct when you say that your payments would only ever increase if your salary increases. Even then we would also take into account any increase in your cost of living - payments are intended to be realistic and affordable. As regards bonuses, overtime etc then, yes, if you do receive these, you would be expected to pay a proportion into your Trust Deed. I note that as a teacher you say that you don't receive such payments ÔÇô which would mean this requirement did not affect you.

We will of course run through all of this in detail (and how it relates to your personal circumstance which clearly we can't do in this forum) before you sign your Trust Deed. Naturally we also put everything in writing for you too, again before you come to the point where you sign your Trust Deed.

I hope that helps put your mind at ease. We will continue to try to make contact by phone but if in the meantime though if you would like to talk anything through please feel free to call or email me or indeed pop in to see me.

BS

Hi stephenm1982

This is always a difficult time for people, and the forum is here to give you information, and other people's experiences. It has been good as it has allowed Barry to make contact with you, and to answer all you questions. You are also going to get things in writing once the valuation is carried out, so that is all good. Concerning: you should never have to pay a lump sum up front!!

Just regarding the £500 "nominal payment" connected to equity mentioned by Barry it's worth adding that other firms follow the same methodology without charging the £500.

There's nothing wrong with charging this £500, a number of trust deed firms do, though the number seems to be reducing.

Good point TDA.

I never paid a £500 fee and quite frankly would not have been able to do so ! I never quite understood what the nominal fee meant for some companies and still don't! Particularly if there is no equity in the property! Some companies charge some companies don't .... Why pay monies when you don't have to and have the same outcome at the end? THINK BEFORE YOU SIGN and all will be well.

The £500 fee keeps coming up. It is confusing when Barry says it is 'set' by the AIB and others say it is flexible or not chargeable by some IP's. Does this mean it is set as a max by the AIB or a guideline. I can't find reference to this on the AIB website.
It is delaying decisions for me as we're being told by 2 different IP's and a debt advisor that we will need to have someone pay £40 val. fee plus £1000 per property (£500 each as joint owners) on top of the trustee fees each. I would love to experience the releif others describe and reaching a decision and putting things in place but it seems ludicrous to say, we can't afford to become bankrupt.

Hi Pamjo

There are 2 points here. Firstly the equity position is not in the Act, it is guidance to Trustees and secondly they refer to nominal amounts. Is £500 or £1000 nominal? Not in my world!!

I am surprised at Barry's comment that it is set by the AIB. It is not. Any talk of £500 by the AIB refers to pre 1993 public funded cases. As I have stated previously, this was in an age when we registered title to property and then had this discharged and the cost was to cover the legal costs in this.

It refers specifically to 'a nominal sum sufficient to cover the trustee's costs in relation to the property and its disposition' For my firm this is 2 x £15 which are outlays in the Trust Deed. These are the Registers of Scotland costs for inhibition registration and also discharge. I wonder how many Trustees go to the bother of registering title?

Here you go, chaper and verse of the guidance from the AIB below.

'In some cases the property may remain unsold because there is no present equity. Unless there is a reasonable prospect of the equity position changing in the foreseeable future, the trustee may not wish to remain in office and may wish to obtain his discharge.

In these circumstances the trustee should attempt to reach an agreement with the debtor whereby the trustee would formally relinquish his interest in the property upon payment of a nominal sum sufficient to cover the trustee's costs in relation to the property and its disposition'

Mark

Thanks Mark!
£1000 per property plus valuation is not 'nominal' to my husband and I either.

further to this, I am told the IP has to instruct the survey-is this factual or just preferable so it will be instructed as a 'bankruptcy/distressed' valuation?

Hi Pamjo

Yes a valuation is needed in all cases.

The valuation will take account of the bankruptcy and should not rely on an estate agent valuation or such like.

Mark