Hi, I was wondering if someone can help??
My wife and I have recently separated. We own our house that has around £80k in equity. We have three children, one who’s disabled and the house is adapted for her.
I have around £45k of unsecured debt that I am struggling to pay now due to separation, paying child maintenance and renting.
My wife doesn’t have the option to remortgage and buy me out and she doesn’t want to sell the house. I wouldn’t want to because the kids live there and it is fully adapted for my disabled daughter.
Is anyone able to advise where I would stand with the house if I was to enter a trust deed?? Would we be forced to sell or is there another option to have the house excluded?
Thanks in advance
Hi GordonC. Thanks for your question - my apologies for the delay in responding.
There is usually room for flexibility around homes in Trust Deeds, so it certainly may be an option that could work without having to consider selling. The proposals to creditors would stipulate how your house would be dealt with (ie NOT sold, though you may have to lengthen the term of the proposed trust deed payments by a couple of years in order to get creditors to agree). As long as it gets agreed by sufficient creditors and becomes protected then the property would be safe as long as you stick to paying what was proposed.
if it does not get accepted then the Trust Deed could just be terminated. However, it should be said that technically one of your creditors could petition the court for you to be made bankrupt instead, which would obviously put the property at risk. In my experience this is incredibly rare though and I guess this very small risk needs to be weighed up against the risk of creditor action if you don't go down the Trust Deed route and can't get another viable option in place that will protect you.
Very happy to discuss the details of it all further if you wish to find out more.
thanks for getting back to me. This is reassuring to hear. I would be more than happy to arrange a call so I can explain things to you in more detail.