Hi Andrea73.

If you don't have significant assets there is actually not that much difference between trust deeds and sequestration. The effect on a credit record is similar.

If your disposable income is very limited you may not be in a position to manage sufficient payments to make a trust deed work.

One benefit for you could be that your discharge will take place after 12 months rather than 36.

Have you been told that you'll need to make a monthly payment for your bankruptcy?

Hi Andrea73

when assessing whether Trust Deed or Sequestration is the route to take or in that case the Debt Arrangement Scheme it is important to be aware of the "disposable income" as well as the level of income. Has anyone gone through an Income and Expenditure assessment in relation to the options?

Chris

Yes we've went through an income and expenditure and at the end all we have left is £220 per month between us.

Creditors can object to trust deeds if the level of return is less than a certain percentage. Perhaps contact an insolvency firm and ask them to complex an assessment. A good firm Wil outline different opens available to you.

Regards

I spoke with someone from French duncan yesterday who was recommended by CCCS. Looking at all the incomings, outgoings and debts it looks like sequestrian for me and a trust deed for hubby.

I'm really worried about losing the house though. I've asked for a redemption figure for the mortgage and I've to get a valuation done so they can see if there is any equity. What if there is say £8k equity? How does that work?

Hi Andrea73

Are French Duncan intending to do both?

If so, they will obtain a redemption for the mortgage and a valuation to determine if there is any equity. If they intend to do the Trust Deed, but get AIB to do sequestration, then the AIB may instruct a seperate valuation. If there is equity, then it's likely the trust deed would be extended to deal with this and similarly the sequestration.

Mark

Im pretty sure they will do hubbys trust deed and I would be AIB. They have also asked me to get the valuation done but that's gonna cost £180 - money I just don't have!!

I'm so confused I don't know what to do now

Hi Andrea73

I think the most important thing at this stage is to assess the equity. £180 does seem a wee bit high. My own firm and a number of others usually have the valuation done before signing. It may well be that there is nothing in the property and that would resolve the main issue.

If you obtain the valuation and redemption, at least that gives you a clearer way forward.

Mark

Hi mark

Could you recommend a firm who do valuations for you?

Hi Andrea73

We have our own guy who does pre valuations before any case is signed, but you could try Alan Penman and negotiate a smaller fee. I'll dig out his number as I'm out just now.

Regards

Mark

Hi Andrea73.

I think that each of the firms represented here by Mark, Kevin, Chris and Shona would get that valuation done for you before you became committed. As well as giving you peace of mind it would save you that £180.

Thanks for all your advice. I think I'll mention this to them and see what they say.

I don't see how they can advise that a trust deed and a sequestration are the best ways forward without knowing whether you have equity in your property.
If you are at all worried about your house then you need to get a valuation before signing anything. If the IP firm you went to is not willing to pay for this to happen in advance then, as the others have said, there are some here that will.

I am sure they will assess the position once they have the property value and outline the number of different options available to the client but i agree the property value does sound a little steep however, i guess it depends what type of valuation they are obtaining (desktop, drive past or actual attendence)

I have always said communication is the key- give them a phone and outline your concerns. I am sure they will put your mind at ease.

Regards