Hi wag1 and welcome to the trust deed forum.

You will be expected to contribute the value of significant assets (such as equity in a property) towards your debts if you were to go ahead and sign a trust deed. Sometimes if there is a lot of equity other debt solutions will be more appropriate.

How much equity do you think currently exists in each property?
I'd suggest that you are conservative in the value that you put on them as the valuation used for the purposes of this in a trust deed would generally be based on what might be achieved if they were sold quite quickly.

The suggestion about 10p in the pound is a bit of a red herring for you. In a trust deed you will be expected to pay whatever you can afford towards the debts for a fixed period which is generally three years.
The trust deed companies themselves are subject to guidance that they should not initiate a trust deed unless they realistically expect to produce a dividend for creditors of a least 10p in the pound after they have deducted their fees.

The experts here will be able to provide further advice if you could let us know about the amount of equity, the amount that you currently owe on unsecured debts, and how much you think you can realistically afford to pay towards your debts each month after all of your necessary living costs have been covered.

thanks for your speedy reply.
I have around ?ú60,000 of unsecured debt.
the man who I saw today said that I would have to get my own valuation of the properties done to decide if it was best for me to enter a trust deed.Then if I signed the trust deed he woul then get surveyors to value the properties.So I really dont know what to do!!!
The house I live in has little or no equity in the other two are flats that are rented out one of them has perhaps ?ú20,000 equity and the other one has maybe ?ú5,000 equity.
I am in areal sticky wickett on what to do?

Hi wag1,

The way that some of our featured experts work around this is to agree with you (in advance) that you get valuations done by valuers that they already use for their trust deed cases.

This means you know exactly where you stand, as the valuations you obtain in advance will be the valuations used for the trust deed itself.

Would you be prepared to see the rented flat (with significant equity) sold as part of dealing with the wider debt situation?

Properties with very little or no equity will not be a problem so long as you choose a trust deed company that confirms the situation in writing for you before you sign the documentation.

So do you mean that I would have to pay for these valuations upfront?
I would be happy to lose the rented flat with most eqity to help solve the problem.Who would you say is the best person to speak to,I must also say that I am self employed as well.

Thanks very much.

Hi Wag1

as detailed through the forum, trust deed valuations normally come back less than normal estate agent valuations. Deduct the settlement figure for the mortgage and this will give some indication of the equity.

?ú60k debt is a lot to deal with. I'm surprised at the advice. Why get a valuation only for the trustee to get one later. What if the Trustees is higher? Best advice is to speak to the IP direct and use their surveyor on the basis that the trustee will accept the valuations.

Mark

Hi wag1.

Self-employment need not be an issue though choosing a trust deed company that works with plenty of self-employed people will probably be to your advantage.

By the means that I mentioned you would need to pay for the valuation upfront. However if you don't mind disposing of the property with plenty of equity, and you are pretty sure that very little or no equity exists in the others, this might not be necessary anyhow.

There are three trust deed companies represented on this forum by Mark, Kevin and Julie. Each has had good feedback from other visitors to the site that have gone on to use them (you'll probably be able to find some of it if you have a dig through the forum). We acknowledge that there are also plenty of good trust deed companies that aren't currently featured here, as well as there being a few out there that consistently receive poor feedback in this forum.

Thank you mark for the advice it is very true.
This is all very new for me and it's not very straightforward.
This may siund a little silly but who or what is th IP?

Regards

Mark's guilty of using the industry terminology here wag1!!

An IP is an Insolvency Practitioner. These are the highly qualified professionals that take a personal appointment to handle a trust deed. Most IP's also have teams that assist them with their trust deed work. IP's typically come from an accounting background and go on to take some pretty tough exams that qualify them to handle insolvency work (for individuals and companies).

An IP becomes your "Trustee" if you go ahead and sign a trust deed and is personally responsible to you, your creditors and his/her regulators for the conduct of your case.

Please feel free to ask as many questions as you'd like. It's very important to fully understand everything in order to make a proper balanced decision when you are ready.