Hi Mark I've been on to the trust deed and they've Said I have to pay it all to them. This is worrying me again as I thought by selling I would be debt clear to family council tax etc and I would only have my trust deed to pay till August then it would be over but I'm still going to have this hanging over me plus I won't have a deposit for rented accommodation staying with my parents wasn't meant to be long term. Is there anything I can do . ??

There's a genuine issue for your trustee there dell00.

They're responsible for recovering funds for the creditors of your trust deed. Keeping some of this money to repay new debts would effectively be at the expense of the trust deed creditors.

There's a better argument for letting you keep enough of the proceeds of a sale to relocate, especially if the sale of the property is conditional upon being able to do that.

How much do you think your creditors would benefit by (the amount you'd be able to pay over) if:
1 - You sold your home.
2 - You were allowed to keep enough to cover relocation costs.

Or, to put it another way, is there much equity in your home?

I reckon about 8/10 thousand the hope report has still to be done . I've worked out I would need around 5 to pay everything else that's including deposit for rent .

Hi dell00

The Hope Report? A Freudian slip I think.

Mark

Hi dell00,

If you only have £8,000 to £10,000 of available equity then I can't see your Trustee allowing you £5,000 to use to repay debts outside your Trust Deed.

The Trustee has a responsibility to the creditors that are subject to the Trust Deed. It would be unfair on those creditors not to receive their full balance back but creditors outside the Trust Deed do.

Your Trustee isn't required to give you any money from the sale of the property as it's their job to try and recover as much money as possible to repay your debts. To accumulate a deposit you could choose not to maintain the mortgage or secured loan payments whilst living in the property and within a short period you should save enough to put a deposit down to rent another property and help towards moving costs etc.

To repossess the property the lender needs to apply to court and a court hearing date it set. A sheriff needs to make an order for the lender to take back the property. You can appear before the sheriff and explain your current financial situation, that you are subject to a trust Deed and your budget is extremely tight. Work out how much you feel you could pay towards the arrears and propose this to the sheriff for consideration. On the day at court as long as your proposal for repayment is reasonable you may find that you can reach an agreement with the solicitor of the lender. I guess you could do this as a last resort to try and keep the property.

Ha yes the home report lol. You made me made me smile there

Hi dell00

Ha! I remember 25 years ago the firm I worked for had a standard letter advising the recipient 'if you fail to disclose assets, you may be subject to a fire' It should of course have read 'you may be subject to a fine'

I wonder how many people thought the laws were so much harsher then!

Mark