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Scottish Trust Deed Forum
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Topic starter
01/06/2010 4:03 pm
Hi looks like a trust deed is the best course for myself to get out of debt, I have credit cards and loans in my own name and I am struggling to get by. Problem is, I own my house along with my wife which was bought on a Northern Rock together mortgage, meaning we got an unsecured loan on top of the actual mortgage to clear old debt of mine.
Long story short we are going to sell the house but it won't sell for enough to clear both the mortgage and the loan, meaning we'll be left with the loan to clear which will be in both our names. Does this mean that my wife would have to enter a trust deed as well to get us debt clear?
01/06/2010 4:17 pm
Hi KevAyr,
Presuming that the Northern Rock loan is in joint names your wife would remain liable for any debt not repaid by a Trust Deed that you entered into.
If your wife's debt repayments aren't affordable a Trust Deed certainly might be one of the options for her to consider.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
01/06/2010 4:29 pm
Hi KevAyr
Can you give us a little bit more information please?
I note that you have a ÔÇÿTogetherÔÇÖ mortgage with Northern Rock. If you were to sign a Trust Deed the unsecured proportion of this debt would be included in the Trust Deed. This may well change the ÔÇÿequityÔÇÖ position in your house. Do you know what the current value of your house is and the sum due to Northern Rock, split between the secured and the unsecured loan? What are your total debts including the ÔÇÿunsecured loanÔÇÖ? Does your wife have any debts apart from the ÔÇÿunsecuredÔÇÖ loan with Northern Rock?
After you have paid all of the essentials i.e mortgage (excluding the unsecured element), council tax, utility bills, food, travel etc how much do you believe would be left over that you could afford to pay towards the debts each month?
As the unsecured loan is a joint debt, if you were to sign a Trust Deed, Northern Rock would then pursue your wife for the full amount.
Julie
Julie is not currently posting in the Trust-Deed.co.uk forum.
