Hi maverick267,

Provided that...

1 - The Trust Deed becomes protected
2 - You have included all of your debts
3 - You meet all of your responsibilities to the Trust Deed
4 - You have not taken on any new debts

...there will be no debt at the end of the Trust Deed. Any debt that has not been repaid is written off.

The issue of equity is different. If you have equity in your property currently you will need to make a payment in lieu of it. If you develop equity during the Trust Deed you may have to pay a payment in lieu of it. How this will all work, for you, should be made clear to you before you sign a Trust Deed. We recommend that you also get the detail of how this will work in writing before you sign the Trust Deed.

If you are referring to lenders still chasing debts, after a Trust Deed has finished and the debts no longer exist, this is simply because they have not properly updated their records. This is something that can be fixed and certainly doesn't happen for everyone.

the equity is what is concerning me how would i pay the equity to my td ip

Has your Trust Deed IP been through this with you as yet?

Do you believe there to be equity in the property currently?

i dont think there is much equity in th ehose to cover the debts ,i cannot remember how i would pay if there was or at the end i have signed the deed

Following recent changes in legislation, Insolvency Practitioners are required to have a valuation of your property carried out prior to you signing the Trust Deed. This valuation, together with current redemption figures, should provide sufficient information for both you and your proposed Trustee to know the exact position with the property, therefore thier proposals in relation to it should be clear and thoroughly discussed with you prior to signing.

Should your property have no equity you may be asked to pay a nominal sum - Industry standard is ?ú500, but this can vary. This payment can be made by the extension of the agreed monthly contributions.

An extension of the monthly payments can also be a method used if you have relatively little equity. Some firms will even allow a further 2 years of monthly contributions in lieu of equity. That sounds like a lot but if those payments are met it can protect your property, and in actuality it brings the Trust Deed term in line with an English IVA.

Should you have more equity than can be dealt with by the extension of monthly payments you should seek specific advice from your proposed Trustee in relation to the equity. A third party buy out of the equity is always an option they will suggest but is very rarely realistic.

Should the trustee simply suggest that you could remortgage after your monthly contributions are finished it would be at this point that you should be wary as re-mortgages are always dependant on the current lending market, which at the moment is poor with people in Trust Deed's only able to obtain around 60% Loan to Value of the property if they are lucky. Of course what the situation will be like in three years is anybody's guess.

Hi maverick267,

I think a quick call to your Trustee is in order. They should be able to remind you pretty easily as to how this will work for you based on your own circumstances.