Hi

Sounds like you have been badly advised at the outset kendocazza. The position regarding the equity in your house should have been clearly explained to you prior to signing, something which the firms that Mark and I represent consider to be of the utmost importance. From the sounds of it this wasn't done, as otherwise you would presumably have chosen a different path.

Unfortunately you are now in a very difficult position, with no obvious route out except trying to come to some sort of deal with your trustee. When was the house valued?

this was taken out in 2004

I still don't understand if I did not owe ?ú26,000 to begin with and have paid over ?ú16,000 that they can still take this money is there anyone who can explain why this is legal?

Hi kendocazza,

I think what may be happening is that the fees charged by your Trustee for handling the case have been added to the original debt level. In itself this isn't unusual.

Despite this the fees would seem to have to be enormous if an extra ?ú26000 is now required.

Perhaps you could ask for a breakdown from your Trustee of the fees they wish to charge for handling your case?

Is the valuation of the home from the start or the end of the Trust Deed?

Hi

The valuation was done about a year into the trust deed, I will write to them and ask for a breakdown

Thanks Caroline

Good luck with that Caroline.

Please let us know how you get on.

I'm afraid there will also be interest to be taken account of, Caroline.

If there are sufficient funds available to pay the debts and the administration costs of the trust deed in full, then the trustee must next pay interest on the debts to the creditors from any other funds that are available.

This is why a trust deed is usually a bad idea for anyone who has assets which are more than enough to repay the debts in full. You could end up paying significantly more than the original debt once costs and interest are added in.

Again, I'm afraid it sounds as though a trust deed should never have been advised to you as the best option from the start. A valuation should have been ascertained beforehand and the implications of any equity you had fully explained to you. If they had been, I imagine you would have chosen a different route.

Hi

That was another thing that happened when I took out the trust deed,as they did not value my proprty at the time there was a significant increase in the value of my house. I could not remortgage to cover the original debt but by the time the valuation was completed which was a year or so later the value of the property was over what I owed

I have to agree with Kevin kendocazza.......I'm not convinced from the information provided that the initial advice provided to you was necessarily in your best interests.

A Trust Deed is an ideal way for some people to deal with overwhelming debt but it is by no means the only way.