Hi all

Many thanks for the comments. It's very much appreciated.

Mark

thanks for all the replies 🙂

I know each case is different but to get a rough idea with the equity i have in house at moment, the amount i pay out to the 27k of debts which is ?ú200 to a loan, ?ú60 to an overdraft, ?ú80 to one visa and ?ú40 to another (which is about to increase)
Would i be better off each month and how much equity would i have to release from house

thanks again :~)

Hi Scozie

You would need to release all the equity. This is calculated by a Trust Deed valuation less mortgage redemption figure.

Mark

Hello scozia,

The monthly payment into a Scottish Trust Deed would be calculated by running through your income and expenditure to find out how much is left over that can be used to repay debt.

It's not really a case of whether a Trust Deed would make you better off. A Trust Deed, along with other debt solutions, is there to deal with debts that are not affordable. If the repayments are affordable they should be serviced as normal.
As such if the amount left over is the same or more than your current repayments the good news is that you do not need a Scottish Trust Deed or any other type of solution.

If the amount left over is less than your contractual debt repayments some sort of action (Trust Deed, DAS, Debt Management Plan etc etc) would be sensible or there is a risk that the debts will spiral upwards.

A good debt advisor will be able to help you complete an income/expenditure record that is consistent with the expectations of creditors. They will also be able to help you weigh up the advantages and disadvantages of the available options as they apply to your unique cirumstances.

Be careful - nobody seems to be mentioning that your car if not HP is an asset as it is above ?ú1K in value.

Ask the Trustee (potential) how they will treat that asset.

I'm not sure about the others but I have been wondering, based upon the information in the thread thus far, whether a Trust Deed is going to be right for scozia.

The example used, paying ?ú500 per month and contributing ?ú10000 of equity, adds up to ?ú28000 over three years (without any consideration for a car). The debts total ?ú27000. In such circumstances DAS or a debt management plan might be considered to be more appropriate options.

Of course if the monthly contribution that is affordable is less than ?ú500 a Trust Deed becomes more of a relevant option and naturally the car (if it is of sufficient value) along with other assets such as the home will need to be taken into consideration.

hi thanks for that, yeah not sure if one is best yet either, the thing is can manage all my payments each month, the two loans, the car loan, my mortgage, what kills me is the 2 visa payments and the overdraft payment, if i didnt have those i would probably manage each month
But as someone said earlier its not about being better off each month, these debts will take me years and years to clear as i only can afford the minimum payment, will a trust deed it would be cleared in 3 years and i can start again?

It sounds to me like you need to sit down and go through your budget with a money adviser/insolvency professional. Your best options will be determined by what is left over to pay to all of your debts once your reasonable living costs are taken care of. It may well be that a trust deed is unnecessary - it should only usually be looked at as an option if the debts are not repayable within a reasonable timescale(forget interest by the way, this can normally be stopped in a debt management plan/DAS).

For example, if you owe ?ú27000 and can afford say ?ú400 per month, then it would take under 6 years to pay the debt. This isn't a huge period of time and would mean that you are not entering into an insolvency arrangement like a trust deed where your property could potentially be at risk if you weren't able to raise the equity required.

From the information presented to date I see the position as follows:

Equity in Property = ?ú15,000 (?ú120K (Minimum Value - Mortgage (?ú95K) and Secured Loan (?ú10K).

Car - anything from ?ú1K - ?ú5K in value (not HP)

Worst/Best Scenario = ?ú20K of assets

Total unsecured =

?ú12,000 Loan
?ú5,000 Overdraft
?ú5,000 Credit Card
?ú4,400 Credit Card
?ú5,000 Car Loan

?ú31,400 Unsecured Creditors

If you are paying ?ú400 per month to the Trust Deed it would take you 78.5 months under the DAS - just above 6.5 years

If you do the Trust Deed you will pay back in the region:

?ú400 x 36 = ?ú14,400
Asset Realisation ?ú20,000

Total = ?ú34,400

Check the values of the Property and Car before deciding anything.

Accordingly you are right to consider carefully.

Total =