Hello starfoot8 and welcome to Trust-Deed.co.uk.

When you sign the trust deeds your trustee (at Creditfix) will have legal responsibilities to realise your assets to help to repay your creditors.

It sounds as though you believe that there is £30,000 of equity in the home?

If that's true, the trustee will need for this sum (or whatever they calculate the equity to be) to be paid over before you can be discharged from the trust deeds. This is in addition to the monthly payments that you'll make.

Do you know anyone that can provide you with this kind of sum of money? If not the property may need to be sold to raise the money. The proceeds (or much of them) will go into the trust deed.

I'd hope that this would all have been explained to you in detail already?

Was there any discussion about how you might deal with the equity before the trust deeds end?

Many thanks for getting back to me. No, not at all! There was discussion about our house being on the market, as it is just now, and they said that we'd have to take it off the market for the next four years. They also asked if we understand that if we were to sell then the full amount of the debt would have to be repaid. Does that mean that given we estimate having approx 30k in equity and 38k in debt, the 30k would be subtracted from the debt? If we knew someone who had that kind of money to give us, or we were successful in selling the house, then we wouldn't be thinking about a trust deed. What would happen at the end of the trust deed then with the house? I'm confused, sorry!
I'm actually quite annoyed at Creditfix now because I explained that we were considering this to help with the financial settlement as part of the divorce and they suggested that we both take trust deeds out and would I accept that my ex pays all or part of my payments as the financial settlement for the house?! Given that my ex is still living in the house and wants to stay there! Nothing was explained to me about the equity!
I should also say that we have not signed anything yet, phew!

It really should have been starfoot8. One way or another the equity will have to be dealt with if either or both of your sign trust deeds. Unless it can be found another way, the sale of the property is likely.

The most you have to pay towards the debts in trust deeds is:
1 - The total amount of the debts.
2 - Interest on the debts.
3 - The fees/costs of the trust deeds.

36 (months) times £500 (monthly payment) = £18000.
Add £30000 of equity and you get to £48000.

You do mention four years. Was it suggested that each of your trust deeds would run for four years?

As your debts are £38000 now the interest and fees/costs could easily mean that all of the equity would be consumed by the trust deeds.

Did the adviser tell you that you could enter a debt arrangement scheme (DAS) that, at £500 per month, could clear all of the debts in six years and four months without including the house in any way?

And that you'd be legally protected from creditors and that no more interest would be applied if you chose DAS?

And that you'd still both own the house, so you might each have a decent financial asset still?

Did the adviser warn you what might happen to you if your ex failed to pay your trust deed as part of a divorce settlement for the house?

[:0][:0][:0] at what Creditfix have been saying!!!!!

TDA's questions are spot on. I'd add one more. Did they tell you that a trust deed is insolvency?

This forum has stopped us from making a HUGE mistake!! Thank you so much!! The answer to most of your questions is no, credit fix did not discuss any of that with us! I phoned the advice line given how complex this issue is, certainly for me to understand anyway, and the advice I was given was great, I really can't thank you enough. My ex also called tonight and was given really good advice so we are going to look into a DAS through citizens advice, if we can get an appointment soon, otherwise we'll be in touch with one of your recommended companies. I'm kinda looking forward to the discussion I plan to have with creditfix now. I can assure you they're gonna have a flea in their ear by the time I'm done with them!

I went to citizens advice when I was first looking into debt solutions.

you have dodged a bullet by the sounds of things.

Good luck whatever option you choose.

Paul