Hi mrsmccaig04,

Selling someone’s property is an absolute last resort and in the majority of cases can be avoided.

Do you know how much equity your property has? This is the difference from the value of your and your outstanding mortgage. Has anyone looked at this and valued your house?

In terms of creditors objecting to your Trust Deed and if this wasn’t accepted that you would have to sell your house it doesn’t work like that. In the event that your Trust Deeds were rejected then you have the option of coming out of it and looking at a Debt Arrangement Scheme.

Speaking directly with a qualified advisor about your options can help to clarify a lot and put your mind at ease. Kevin or I the two experts on the forum would be happy to give you a second opinion. We work to a set criteria from the creditors so can give you a good idea up front of the possibility of your Trust Deed being accepted.

Can you tell me a little more about your situation i.e how much debt you have, the level of equity and what you could perhaps afford to pay per month.

Welcome to the forum

Whether Trust Deed proposals would be acceptable to your creditors really depends upon what is being proposed. However, the majority of creditors, including the two you mention, are happy to accept proposals as long as they meet their criteria, of which any good insolvency practitioner should be well aware.

As David says, you would really need to give us more information if you would like reassurance about your own particular circumstances, but we would be happy to do so if you contact us.

Between myself and my husband the debt about is 45,000. I have not had my property valued but Zoopla reckons £130,000 is the value. My mortgage balance is in the region of 80,000. Not sure of the exact figure from the top of my head. It would be around the £350 mark for the monthly repayments.

What did the adviser you spoke to say about the equity in your property? It can be relatively easy to work around where there is fairly limited amount of equity, but £50000 would normally mean a Trust Deed wouldn't be possible to be honest.

Can I ask, how is the debt split - fairly evenly, or is most of it owed by one or other of you?

The adviser said they could do the trust deed over 5 years as opposed to 4 to compensate for the equity. The debt is split evenly

Was it an insolvency practitioner you were talking to, or an intermediary who would then pass you on to one?

It used to be fairly common among some firms to set up this kind of arrangement, but the Accountant in Bankruptcy have said that they may refuse to protect trust deeds that are set up where a significant amount of equity is not being gathered in.

You need to be careful about proceeding with Trust Deeds based on the figures you have provided.

Trust Deeds can be extended for 1 year but the guidance set out by the Accountant in Bankruptcy is quite clear on this and how this must work.

The first test is that is the equity in the property shouldn’t be more than your debts and this would appear to be the case. The other thing you need to consider is that if you enter into a Trust Deed and there is a change in your circumstances and you can’t afford the payments then there is a threat that your property could be sold in the Trust Deed.

These are all the things that a good advisor should take you through.

I would suggest you also consider a Debt Arrangement Scheme. This will be longer than your five year Trust Deed but it will have less risk to your property.