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Scottish Trust Deed Forum
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Topic starter
10/08/2015 1:21 am
Hello All,
I have been in a trust deed now for over 16months, However since entering it i have lost my job now
I am struggling to live and get by never mind trying to keep up with this payment now also
I had 1 main priority whilst entering it and that was to keep a roof over our heads and not lose our mortgage
Can i ask
What my options would be as they keep calling me asking when i can start back my payments?
If i was to enter bankruptcy now will i lose the house? I dont want to risk anything for my family and fear the worst
My mortgage was 93k in 2007
I owe about £75k however prices have fallen since this period so i would guess there is no equity as there wasn't when i entered into the trust deed
Helppppppp
10/08/2015 9:15 am
Hello M77CKK and welcome to the forum. I'm sorry to hear that you find yourself in this difficult position.
I guess the main thing is to keep your trustee informed about your circumstances. They should not seek a payment from you until such time that it becomes affordable again.
Bankruptcy isn't an option for as long as you remain in a trust deed. You'd need your trustee to discharge you from the trust deed before that can happen.
Bankruptcy does not necessarily mean losing your home. It would only be at risk of being sold if that would generate money for your creditors (because there was equity in the property).
How likely do you think it is that you'll find new work soon?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
10/08/2015 10:06 am
Hi M77CKK,
Sorry to hear of the difficulties you have faced since entering into the Trust Deed.
How long did you enter your Trust Deed for and how many payments have you missed since you have been unemployed for?
I would just explain to your Trustee that you are still unemployed and therefore unable to make any payment towards your Trust Deed. Don't feel any pressure to pay your Trust Deed whilst unemployed. Make your mortgage, council tax, gas and electricity your priority.
Like TDA has advised, whilst in a Trust Deed you can't declare yourself bankrupt. This would need to be done by your Trustee or they would need to release you from it and then you could move forward for Bankruptcy. It may eventually come to that if you are unable to recommence with your Trust Deed payments within a reasonable timescale.
Under a Bankruptcy, the new Trustee would establish if your property has any available equity. If there was a lot of equity in the property then unless you or a third party were able to come up with a proposal for paying this sum over then the sale of your property may be considered. If you are concerned about the possible equity speak with your mortgage lender and ask them for a ÔÇ£redemption figureÔÇØ and also speak with one or two local estate agents about the value of your house as this will give you an indication of how much equity you may have.
Your Trustee will eventually need to balance up continuing with your Trust Deed, releasing you from it within your discharge from your debts or declaring your Bankrupt.
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