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Topic starter
30/08/2010 11:54 am
My friend has ?ú20,000 debt. She took a loan out and used her house as a guarantee (I think for ?ú10,000). She has been told that if she accpets a Trust Deed she will lose her house - can anyone tell me if this is true?
30/08/2010 12:59 pm
Hi Doncannon
Welcome to the forum
I think we need a wee bit more information from you before we can answer your question. Is the debt secured against the property? Is there equity in the property? Is it jointly owned? What is the total sum of her debts?
Hopefully once you have provided the above we can give you some advice.
Julie
Julie is not currently posting in the Trust-Deed.co.uk forum.
30/08/2010 1:00 pm
Hello Dconcannon and welcome to the forum.
The answer is that whether or not she would lose her house after signing a Trust Deed depends entirely upon her circumstances.
Does the ?ú20000 debt include the ?ú10000 loan secured upon her home?
How much equity is their in her home (valuation minus mortgage and any secured loans)?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
30/08/2010 1:02 pm
Hi there Donna
The secured debt cannot be included in a trust deed without the property being sold as the secured lender has a right to rely on their security for repayment.
Any unsecured debts could be included in a trust deed, however if there is equity tied up in the house then it is probably not the best option as the funds would have to be released from the property somehow, which could mean it being sold if there is no other way of doing so.
Hope this helps. Sounds like your friend might benefit from seeking advice from a money adviser such as at her local authority or CAB.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
