Hi susie,

The most common reason for failure is probably that the creditors perceive that there is a better way for them to make a recovery on the amounts owed to them.

The trust deed companies (that deal with a volume of cases) understand the very clear policies operated by the creditors and would have warned you if they felt there was a significant risk of your case failing.

If you read the interviews with Kevin, Mark and Julie (on the left hand menu) I think that you'll take a lot of reassurance from the high rates of protection that their firms achieve for their clients.

Thanks trust deed assistant thats very reassuring in my case no other way to recover more money as home is in negative equity and car isnt worth much due to high mileage and age my trustee said we were more than meeting criteria and paying back a good contribution so am keeping everything crossed

Another question if you are sequestrated does that mean you have to pay the creditors back the full amount rather than some being written off as with a TD

Hi susie,

The situation would be remarkably similar to a Trust Deed.

You'd be expected to repay what you can reasonably afford for a period of three years. The remainder of the debt would be written off.

I'm pretty sure your Trust Deed will become protected but, as you don't have any significant assets, I really don't think you have anything to fear from sequestration should it happen.

but does that mean if sequestrated you can be made to sell your house even if it is in negative equity and no extra funds can be obtained - am confused just want to pay back all that I possibly can but dont want to lose my home

Hi susie,

They'd only want to sell your home if it would help to generate funds to repay the creditors.

thank you tda - am feeling very reassured your advice is so helpful - thank you for all your help it is much appreciated - the forum is great

Hi

Just wanted to give you my experience. Our trust deed did not get protected this was due to HBOS being our main debt and they would not agree to it. We also had negative equity in our home and car of no value. It has been hard but not much different than if it was a trust deed. We still have our home and our car and we are still paying the same monthly amount that we were paying on the trust deed.

x

Hello jayne9989,

I'm sorry to hear that HBOS did not support your Trust Deed becoming protected. Have you been provided with a reason for this being the case?

It is good to see that even though the Trust Deed did not become protected the outcome for you is still one that will help you to put your debts behind you in a relatively straightforward and reasonable way.

Thanks Jayne 9989 - did HBOS tell you why they objected?

We were not given a reason as such but as they had a big percentage of our debt so that was it. At the end of the day we will be released from the bankrupty in a year and can move on. Will still have payment for 3 years in total but this a small price to pay for our mistakes.

HBoS' criteria for acceptance of trust deeds are quite clear so I am surprised to hear that you have had this problem, jayne9989. Your trustee should be well aware of their criteria and if the proposals they were making on your behalf did not meet them then I would expect them to discuss this with you beforehand.

That was my thoughts Kevin why would HBos sequestrate jane9989 if they werent getting anything else other than the monthly payments - am confused?