Hi frusciante.

My initial thought would be that the shortfall would become one of the creditors to receive a dividend via your protected trust deed.

Presumably your trust deed company is aware of (or involved with) the voluntary reposession?

I'd suggest waiting to see what Kevin, Mark or Julie have to say on this as I'm sure that it's a situation they will have encountered before.

Hi frusciante

Don't worry, its regarded as a contingent debt which means any shortfall will be a claim in the Trust Deed.

Also, the Trustee should sign the forms.

Mark

Hi,

Yeah, my trustee is aware that I have to surrender my home, and they say that its acceptable to include the debt into it.

I had just read online somewhere that if I sign the voluntary repossession form, and date it with that date (which would obviously be after the signing of the TD), it makes the resultant debt unable to be included in the TD.

My trustee (kpmg) hadn't made me aware that they had to sign, they just said to go ahead, and get back to them when it had been done.

Also, my mortgage company (halifax) have told me that I must sign the forms in the branch, they would not send them out to me.

Thanks so much for your help.

Hi frusciante.

It sounds like it might be worthwhile calling your trust deed company to make sure everything goes ahead as expected.

Hi frusciante

If I were you, I'd pass on the paperwork to your Trustee and let them deal with it.

Mark

Hi just a small query was reading this post and I am a bit concerned as i had to surrender my property last year due to me being in a trust deed and my husband bankrupt due to brain injury. I was not aware that my trustee had to sign the forms nor was I told. My trustee is Julie. I was told that the shortfall (?ú30,000) would fall into my trust deed and my husbands bankruptcy. Im just a bit worried now that after our time has ended with the TD and BR that Northern Rock will chase us for the debt which we clearly cannot afford to pay back. Julie Can you help on this one???

Hi LMM

Dont worry, these will be debts in the TD and bankruptcy.

There are 2 ways of possession, voluntarily where the Trustee should sign the documents or repossession where they do it the legal way without consent. Either way, the shortfall is a debt.

Mark

Thanks Mark was getting a bit worried there. It maybe that Julie has dealt with signings as I think the Northern Rock has contacted her already. We are gutted at losing our home but they would not let us make reduced payments till my husband was back at work in September. None the less its only bricks and mortar at the end of the day. He is alive and well today which was my main priority at the time. [:D]

Hi LMM

I'm glad to see that Mark has put your mind at risk.

Julie

Hi LMM,

I'll take the opportunity to say that I'm 100% certain that Julie was thinking "mind at rest" rather than "mind at risk" when typing!!

We've all done it!

Ooops! 🙂