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Scottish Trust Deed Forum
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Topic starter
30/09/2011 10:29 pm
Hi,
I'm new to the forum and have read a lot of the posts and i must say that there is some excellent information. I have a circumstance that i cant see an answer for so i would be very grateful if anyonme could supply me with any answers.
My girlfriend is currently in a trust deed and has been for 2 and a half years and is due to finish in 6 months, she has made all payments on time etc and filled out all paperwork that she has been sent. All seems fine in that relation.
However her house is her own and she has a mortgage which her husband is on and they have been seperated for over 2 and a half years and he has never paid any money towards this. In fact the reason she is in a trust deed is the fact that he left her with 27k of debt and also 6k mortgage arrears. She paid off all the arrears herself and as i say doesnt and hasnt had any money from him. He did say that he would sign the house over to her though! Then the mortgage company said that she had to have a year clear payments to do this.
Then 2 months ago he was sequestered and made bankrupt as he did not turn up at court. What is her situation now is a major question. There is equity in the house and the company that is dealing with her ex husband valued it recently leaving 15k equity. I know that the interest lies with her trust deed and they have been very good but im not sure how we go forward from here. The thing is, he owes her more than the share of his equity due to arrears and payments made by herself over 30 months.
I know this is a very difficult situation but if anyone could answer any questions like how we can get the house signed over and what happens at the end of her trust deed and what she has to pay or needs to pay.
Thanks
01/10/2011 9:05 am
Hi speshconsumer
Could you clarify the point where you say 'the house is her own'
If the house ownership/title deeds are only in her name but with a jointly named mortgage, then the husbands trustee can have no interest in it. If title deeds are in joint names, then the Trustee in bankruptcy of her husband can and will seek half of the equity.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
01/10/2011 9:19 am
Hi sorry I meant that the house is jointly owned by both of them and both on mortgage but he has not paid anything at all in 30 months plus had arrears.
Thanks
01/10/2011 9:48 am
Hi speshconsumer.
As Mark says, if the house is jointly owned the Trustee for her husband will seek his share of the equity.
The Trustee for her trust deed will also seek her share of the equity before she is discharged from the trust deed (unless something else was agreed at the start).
If their valuation also reveals £15000 of equity it seems likely that each will have to pay over £7500 to their Trustees, either from the sale of the home or by other means.
Your girlfriend should clarify her position with her trust deed firm and make sure they are aware of the sequestration of the other owner. She also has some rights in terms of the property and the sequestration of her husband which she may wish to seek legal advice about, perhaps after the position with the trust deed has been made clear.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
01/10/2011 10:01 am
Just another thought Speshconsumer.
Your girlfriend may not benefit in the way I think you may be thinking if it was agreed that her husband owes her money.
Any debt will presumably now just be another claim in his bankruptcy. The debt, as far as I'm aware, would also be viewed as an asset in her trust deed which would vest in her Trustee rather than be due directly to her.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
01/10/2011 10:58 am
Thanks for your replies!
She has informed the trustee about the bankruptcy.
I'm not sure they have actually done anything or said anything about it though!
Also at the end of her trust deed is all she has to pay £7500?
Thanks
01/10/2011 12:15 pm
Another question-has your girlfriend bought the IP's interest? I assume the trustee had the property valued at the start of her trust deed?
01/10/2011 6:22 pm
Hi Speshconsumer.
Any equity liability will depend on the terms agreed at the start and the valuation done by the trust deed provider as and when they do it.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
