Hi Theo,

You say "of course half of that is my wife", though I must stress this is only the case if your wife is on the title deed. Your comment doesn't mention either way, so I thought best to clarify this position.

You will need to realise the equity somehow. This could be a third party paying equivalent sums to the insolvency; a term extension; or sale of the property.

If you opt for a Trust Deed, then the Trustee is required to have you sign a Form 1B, at the time of granting the Trust Deed. This means you will know the exact equity agreement prior to entering into the Trust Deed.

If you opt for Sequestration, the governing body (AiB) need to approve any equity agreement after award. While a proposed Trustee may be able to give you an idea of what is likely acceptable, there are no guarantees until the AiB has approved the offer.

@nm89 she is on the title yes. It’s 5050

would we be likely to lose the home? Whether trust deed or bankruptcy. 

@tnxbrxgmail-com I think it's very unlikely based on my own experience. There would be costs involved in terms of a selling agent and lawyers to release the £5k.  It's not economical to pursue.  In a Trust Deed, they would more than likely extend the term of it to allow you to "pay up" the £5k equity. It may not even be as much as the £5k you think.

HI, sorry for slow response.  If your valuation is correct then the chances of losing your house would be very low.  There may need to be some sort of nominal payment, or possible an extension to the term of your contributions but as long as that is possible then you shouldn't have anything to worry about.  A Trust Deed may be the safer option as arrangements regarding your home equity would be set out on the proposals and agreed by creditors up front, which are then binding.