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Topic starter
24/04/2012 9:17 pm
Hopefully you can help. My partner and I have recently had our house repossessed and are now staying in a private let, taking what will likely be a 40k shortfall when the house sells into consideration we have approximately 80k of debt. We are really struggling and when we sat down and accounted for every penny we bring in we cannot afford to pay anything towards our debt at all. The only thing I could think of was bankrupty, although im not sure we would even be able to go down this route if we cant pay anything back?? Then I thought if we sold our car (although we are only 1 year into the 5 year hire purchase, so owe more than car is worth) we may qualify for a trust deed because we would then have approx £300 available to contribute towards a trust deed as we would have no HP monthly outgoing, petrol, insurance etc. We do rely heavily on our car, however, if we are going to lose this by going down the bankruptcy route? I was thinking it would be better to give it up and go down the trust deed route. Do you know if we would lose our car if we had to go down the bankruptcy route?
We have joint debt as well as individual debt, would we have to do 2 seperate trust deed applications or could this be done jointly? Is there a minimum amount that has to be contributed towards a trust deed?
Thanks for your help and advice
24/04/2012 10:16 pm
Hi helpnomoney
From the info you provide, a trust deed is not the best option and at the figures you have stated would not work.
Although I dont have a full review, i think you should look at sequestration as this would appear to be the most realistic option.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
24/04/2012 10:16 pm
Welcome to the trust deed forum helpnomoney.
Bankruptcy may well be an option, unlike trust deeds or the debt arrangement scheme you'll not need to be able to contribute towards the debts.
You cannot sell a car that's on hire purchase, it isn't your car to sell.
Having said that, returning the car may open up options in terms of freeing up some disposable income.
You may well not lose a reasonably priced hire purchase vehicle that you genuinely rely upon in bankruptcy.
Trust deeds are always handled individually, but where people have joint financial affairs they can be set up in a coordinated way.
Generally the contributions to trust deeds need to cover 10% of the debts plus the trust deed fees.
I think the first step from here should be to run through your circumstances with a suitably qualified adviser.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
25/04/2012 11:38 am
Morning Helpnomoney
It does sound as though Sequestration is the most appropriate route but
without knowing the full details of Income and Expenditure and the individual levels of debt (and the creditors) it would be hard to assess whether a Trust Deed would be possible.
Agree best route forward would be to sit down with suitably qual adviser to go throught your options.
Chris is not currently posting in the Trust-Deed.co.uk forum.
25/04/2012 12:03 pm
It is also worth bearing in mind that you and your partner do not have to go down the same route necessarily. Depending on the details of your individual situations it is possible that a trust deed may be viable for one of you and a sequestration the best option for the other. Feel free to get in touch if you'd like one of the experts on here to have a closer look for you and give you more specific advice.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
