Hi gogo and welcome to the forum,

The first thing to do is contact your Trustee and speak to them about your case. As you approach the end of your Trust Deed your case manager should be aware and contact you to discuss your discharge or any extension to pay asset value over. Communication is key. You should be scared to pick up the phone and speak with them.

Can you advise what the agreement was at the start of your Trust Deed for the equity and the level of equity that you had in the property?

If it's the case that the equity in your property is the same or has reduced, your Trustee may agree to extend your Trust Deed and continue with your monthly payments until this is paid over.

I would try not to worry too much at the moment, speak with them to clarify the position and hopefully there will be a solution that works for all parties.

There have been a number of posts/topics on equity recently and I would have a browse through the forum to read these.

Hi gogo

If the agreement was for 36 payments, then anything over that will be to reduce any equity figure.

Could you advise what the equity figure agreed at the start was?

Mark

Thanks David, I have had a good read through a lot of posts in the forum which has been very helpful.

Hi Mark, my equity figure agreed at the start was £8,500.00, which was half the equity of the original valuation. I have had two parties interested in taking the equity share one of which has offered me some of the money but based on the latest valuation which fell some £10k short of the valuation carried out in April 2010 which would leave half the equity share at currently around £3,500.00 which is very worrying!

Hi gogo,

Just to confirm, the agreed amount of equity at the start of your Trust Deed which you were going to pay was £8,500? Now from what I understand the equity in your property has reduced to £3,500?

When you speak of parties who are interested in taking the equity were they going to pay this amount over to your Trustee?

In terms of your property, if the equity has reduced due to a reduction in valuation then this would reduce the risk of your property being sold. As you have said, if a sale were to be considered it's unlikely that any net free proceeds would be left over for the benefit of creditors after the sale costs etc had been paid. This is something that your Trustee has to take into consideration.

I would contact your Trustee, advise them that the valuation has reduced and to come to an agreement over the extension of your payments to pay the equity over. You may find that they are happy to accept this and for you to continue with your payments for a little longer.

Hi David,

Yes the equity in our property was valued at £17000, which gave my half of £8500. The property has been valued 3 times in the last 18 months and the best case valuation left an overall equity of £7000. I have had 2 people interested in paying differing amounts to my Trustee, the highest of which was £4000 which is way less than the £8500 I'm due to pay.

I have been putting of contacting my Trustee for fear of bad news, ie: bankruptcy, sale of house.... and as they have not been in contact with me I am still paying my monthly amount which is fine if as Mark says it will go towards reducing the equity figure.

Is it only you who has entered into a Trust Deed gogo?

You really need to pick up the phone and speak with your Trustee. They may not be aware that you have finished your 36 monthly payments. By leaving things and just continuing to pay in the hope that this will deal with the equity will only lead to potential problems in the future.

I can stress enough about speaking with them. If as I said your equity had reduced then Bankruptcy and a house sale is very unlikely.