Hi angi3 and welcome to Trust-Deed.co.uk.

My understanding from previous posts on this subject is that tax credit overpayments can often be included in trust deeds. I think I remember one of our experts saying that this may be easier where tax credits are no longer being received.

I'm sure Mark, Kevin, Rob or David will be along soon to share their actual experience of dealing with tax credit overpayments when they have been helping clients of their firms.

In terms of your home, is there any equity in it do you think?

There isn't really any equity as we bought it when market was good, same homes in our street are selling for less than what is outstanding on my mortgage.

Thanks angi3, that's helpful in terms of keeping your options open.

I'm sure that one of our experts will be along soon to talk a little more about the tax credit situation.

Thank you, in terms of sequestration if I decide to go down that route, how would it work with keeping my home, the mortgage is joint?

Hi angi3.

If there's no equity in the property there will often be no issue in keeping the property if you were to become bankrupt.

It's obviously best to talk this through very specifically with an adviser before making any final decisions though.

thanks again for your help, can you recommend any advisers for me please?

Hi angi3.

This site recommends the firms represented here in the forum by Mark, Kevin, Rob and David.

You'll find profiles, interviews and contact forms for each of them on the main menu to the left of this page.

Hopefully one of them will be along soon to add further information about the tax credit question you've asked.

Hi angi3

Whatever you decide to do, the position with the house is key to everything. Please ensure that the equity position ( if any) is clarified before you do anything. A lot of firms, like mine, assess the position at the start and that position remains with no 2nd valuations.

You should ensure that this, as well as contribution, overtime, length of trust deed etc are clarified before signing anything.

Mark

Tax credits overpayments would indeed usually be included in a trust deed or a sequestration, angi3.

Are you working? And have you worked out what you can afford to pay to your debts each month?

Your house would normally be treated the same, whether you are in a trust deed or sequestration. However, if there is no equity your house should be safe, but make sure a valuation is carried out at the start, and that this is conformed by your Trustee. The main difference if there is no equity, is that in a Sequestration a third party would normally have to pay the Trustee £500 to the trustees interest in your home. This is not always applicable in a Trust Deed - depending on the firm you use.

Hi there yes I do work but only 18 hours a week, minimum wage, does my partners wages be taken into account? also tax cr overpayment was when I was in a single claim, I am now in a joint claim. Barely scraping by paying minimum as it is

And thank you mark for the advice regarding the house, that is my major worry, was going to try and sell it but way market is wont make enough to cover mortgage and fees let alone clearing debt! Will mull it over for a few more days and keep on the forum before I make any decisions but really need to do something living on my credit cards to get by at the minute, which I know is wrong! But needs must sometimes

I would take a serious look at sequestration (scottish bankruptcy). Its not as scary as it 1st appears and may be a cleaner way out than a 36 month trust deed.

The house is probably key in any discussion you have with advisors.

Paul

thanks so much for reply, been doing alot of research last few days and does seem as if sequestration is my only realistic option at the minute will get in touch with a few advisors and see what they say.