Hello Jon and welcome to the trust deed forum.

Much depends on your original agreement with your trust deed firm.

If you agreed, at the start, that you would raise a sum of £10000 based on the equity in your home at that time they will be entitled to continue to expect that this is paid over to help repay your creditors.

You would have a decent negotiating position though if the sale of your home would apparently not help to repay your creditors. This might help you to agree a lower amount.

If this figure of £10000 was an estimate of the equity at the start, but it was agreed that your property would be revalued later in the trust deed, there may now be nothing to pay if there is now no equity in your home.

Are you likely to be able to get any kind of lump sum together from a third party to offer to them if necessary, Jon?

If the trustee does still require equity, you could continue with your contributions until the required amount of equity is raised. TDA is correct though, you may be in a better position to negotiate if your house is valued less now.

Sorry haven't been back on sooner, was waiting for Insovlency Prac to reassess Equity. Thanks for contributions.
I had Equity reduced by £600 which was a bit disappointing as the house has dropped £15000 in value. My options seem to be:
Re mortgage : (No because of reduced loan to value)
Pay in 24 instalments direct to I. P. (£391 a month !)
Get a loan : (Unlikely due to blacklisting?)
Sell house : Will prob only realise about half the required equity, and would be homeless!
Win Lottery.
Trust Deed is up May 30th, getting a bit nervous now.
Jon

Hello again Jon.

Have you been provided with the basis for calculating this figure of £6000?

Is it a compromise based on an original agreement to pay £10000?

Or is it based on the actual equity in the property now according to your trust deed firm?

I think Jon is saying they are looking for £9400 instead of £10000.

As trust deed assistant said previously, Jon, there may be room for further negotiations. If they are unlikely to raise any funds by forcing a sale of your property then I would be surprised if they were not willing to reduce the equity figure by more than £600.

You might need to come up with a proposal, which they should then put to your creditors and hopefully they would accept it.

You're right Kevin.

I totally misread that. Thanks for the correction.

Just off phone to co-op bank to see if they had any ideas. 'Advisor' didn't know what an Insolvency Practitioner was, and had never heard of a Trust Deed [:D]

Have put together 24 month repayment schedule that I can just afford. If Halifax agree to a 'Payment Holiday', I can offer about £8200 of the £9400 they want. Will they charge interest on what amounts to a 2 year loan, and should I offer to extend the repayment period for another 3 months which would cover the difference?
IP has suggested Council 'Buy to Rent' scheme which is a non-starter for personal reasons, Personal Loans/Increased mortgage are impossible, are they likely to force sale of house even though it would not cover full amount either?
I know I'm repeating myself a bit now but the closer May 30th gets the more nervous I'm getting!
Thanks
Jon

Hi Jon.

It's not a loan and there will not be any interest.

I think you need to clarify the situation with Halifax before going too much further.

Assuming they agree to the payment break you could then put together a written proposal to your trustee.

You might consider offering two options:
1: the proposal you mention.
2: a slightly longer proposal offering the full amount.

It sounds like you've done well to create a potentially substantial solution which I'd hope your trustee would consider very seriously.

Got confirmation of payment break from Halifax and was able to put together payment offer totalling £8200 over two years, it is in unequal payments, but I put together a month by month schedule. I am quite optimistic, but I have a tax problem at the moment. If the offer gets rejected what action can the Insolvency Pract take to get more, or quicker payment ?
Thanks
Jon

What's the tax problem Jon?

Will this affect your offer?

Cleared up Tax, still waiting for reply to offer.
JW

I'm glad to hear that Jon.

Please let us know what you hear from your trustee; hopefully a response will come soon.