Hi am123456 and welcome to the trust deed forum.

If you intend for your trust deed to continue to deal with your UK debts, my understanding is that all of your income/expenditure will need to be taken into account irrespective of where you are living or working.

With such major changes predicted you'll want to contact your trust deed company to run through everything with them. There may be adjustments to your payment required.

The sale of your property during a trust deed raises a number of issues, not least that your Trustee will need to be involved in the sale.

If you were to find yourself in a position where you received a significant sum of money (from whatever source - but perhaps from receiving a high sale value for your home) you may potentially need to repay the original debt total, some interest and the fees of your trust deed company.

Hopefully our experts will have some further information to add as there are a number of issues involved here.

cool thanks for that, with the extra income coming in, say from the rent and salary abroad, what is the most my monthly amount could increase to? Say i had an extra ?ú700 from the rent of my house & Salary, that over the 30 months left added to the equity im putting in at the end would be ?ú46000, meaning im paying more back that my original debt amount was!

Hi am123456

Your full income and expenditure will require to be re-assessed, whether you work outwith the uk or not. If you have disposable income of ?ú700 per month you will be asked to contribute this towards your Trust Deed. There is no limit on what you will be asked to pay, it is fully dependant on your disposable income.

If for example you were able to pay 30 payments of ?ú700 and 6 payments of ?ú130, totalling ?ú21,780, once the trustee's fees of ?ú7,000 had been deducted, this would only leave in the region of ?ú14,780 in the 'pot' for the benefit of your creditors. You would still be asked to pay over the agreed ?ú25,000 from your property, at the end of the Trust Deed.

If you decided to sell the property now, your full share of the equity, even if it was over ?ú25,000, would require to be paid to your Trust Deed, for the benefit of your creditors.

Unfortunately if you are in a position to pay your creditors in full, they are also entitled to statutory interest at 8% per annum.

I know that this is a lot to take on board, however please ask if you need clarification on anything.

Julie

Hi am123456.

Your contribution would simply be changed in line with the amount that you can afford to pay.

The most that you could be expected to pay into your trust deed in total would be the amount you owed at the start of the trust deed, interest and the fees of your Trustee.
This scenario doesn't come up very often, but a trust deed will result in full debt repayment where it's affordable for that to happen.

Excellent, thanks everyone that clears a lot up. The renting out of the house would actually depend on me being borrowing money from friends or family as the heating boiler needs changed and the bathroom done up! It might actually be the house sits empty until i sell it at end of trust deed (if i decide to stay in germany)

Hi could one of please advise again if possible 🙂 If i got permission to sell my house and say i made a 40k profit after paying mortgage and fees etc off and I put the 40k in the trust deed, thats more than what wouldve been paid in over the 3 years + equity, would that be the trust deed finsihed or would i need to still pay my monthly amount? or would that be incrased to cover the total cost of debt + interest + fees to TD company

HOpe that all makes sense!

Hi am123456.

Usually you would be required to continue making monthly payments based upon affordability as well as the lump sum.

However the most you would have to pay in total (monthly contributions, plus any lump sum) would be the original debt total, some interest, and the fees of your trust deed company.

Excellent thanks! So for example over the 30 months that was left, if I paid enough each month that at the end the exact amount left would be paid back would that be acceptable or if i was making quite a bit of money would they want higher monthly payments and it paid back sooner?

What im meaning is, say for arguments sake, after paying a lump sum after fees interest etc is added it comes to 12k, thats say ?ú400 a month, would they accept me paying that so at end of 30 months ive paid back everything, and during that 30 months, what i earn is mine, if i get overtime bonus etc I dont need to put in trust deed as it will all be paid back in total over the 30 months?

Hi am123456.

We'll have to see what our experts say, but I suspect that you would be expected to to pay the amount that can be afforded each month rather than a lower amount which is targetted at reaching an overall goal for total payments within a certain timescale.

You have to pay as much as is reasonably affordable, I'm afraid, and once you have paid in enough to cover the debts plus interest plus costs then the trust deed would come to an end.

Thanks again for the replies, really appreciate it 🙂