Hi jmckee5602

The comment on disregarding the 1st 5k is not only complete nonsense, its extremely dangerous 'advice' No where in the rules, guidance or legislation is this stated.

Its interesting that you're advice is from a firm who does not have a licenced Trustee, but will pass you onto one! On the matter of the sequestration, the Accountant in Bankruptcy will have their own valuation carried out and

On the subject of the trust deed, sequestration and payments etc, its difficult to comment without more information. I assume the person you met with took down
all your income and expenditure to assess matters and confirmed it all in writing, especially the equity 'deal'.

Mark

Hello jmckee5602.

Hopefully the trust deed and bankruptcy valuations will produce the figures that you're hoping to receive.

In terms of the trust deed, if there is no equity at the start, you are provided in advance confirmation that the property will not be revalued again later, the trust deed and mortgage payments are made, and that the bankruptcy valuation doesn't throw a spanner in the works, the house should be fine.

There is a £100 fee for bankruptcy, but it goes to the AIB rather than a Court.

While the comment about the first £5000 of equity isn't a formal trust deed or bankruptcy rule, we are aware that some trust deed firms do make some allowance in connection to the possible "costs of sale" if the worst were to happen.

Hi all

So in effect, if the proposal shows £5k equity, then this is disregarded and excluded?

Why bother with legislation when we can make the rules up as we go along!

Mark

There is plenty of room for pragmatism in all insolvency procedures, and thankfully so I'd say. Surely if creditors are happy to accept a slight reduction in equity to make a trust deed viable, given that they would not be any better off by the property being forcibly sold (and in fact probably worse off given the costs of litigation), then there is no harm in this?
At the end of the day a trust deed is an agreement with creditors, if any were unhappy then they would presumably say so.

Hi jmckee5602

Like you i am thinking of taking out a trust deed for myself and my partner is considering a certificate of sequestration due to her circumstances.
We expect to have some equity in our house but know that both of us will have to pay that back to the lender at some time in the future.There was no suggestion at all that my partner would pay nothing.
We are obviously very keen to ensure that we keep hold of our house
and any final decision would be made with that view in mind.
We met a couple days ago with one of the trust deed experts and where made to feel at ease and we where able to ask loads of questions which were all answered.

Hijmcknee5602 & Aveda

There are a few questions in your posts, so I will take them one at a time.

I would agree with Mark that you should stick to a firm who has a qualified IP.

Equity: I agee with Kevin regarding the £5k equity being disregarded. I think you will find that most firms follow this practice, which the Accountant in Bankruptcy is quite aware of and happy with, as are the creditors. The Scottish Government is trying hard to prevent people from losing their home, and for someone to be made homeless for £5k is just ridiculous. As I have said before , a Trustee does not have the power to force a sale of your home in a Trust Deed, they would have to Sequestrate you first. This involves legal fees etc, and is simply not feasable for £5k.

Sequestration: Getting a Certificate of Sequestration does not guarantee you will not have to make a contribution. The only time you can be sure of no contribution being required is if your only income is social security benefit. If you are using the Accountant in Bankruptcy as Trustee, they will normally ask for a contribution if you are earning, but you will not know what you will be expected to pay until after you have been sequesrated (too late !) You may want to get a second opinion first.

As TDA says, the £100 is payable to the Accountant in Bankruptcy.

Hope this helps.