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Topic starter
08/12/2011 2:32 pm
Hi everyone,
We have finally received a reply to our query about voluntary repossesion from my husbands trustee (pr at least from the company who delas with the trustee).
They want to know why there is £4k arrears on the mortgage in the first place, mu husband has told them that it's because we basically have been struggling to pay it as the trustee wouldn't take in to consideration our addition to the family and different living costs ect from the outset but that we appreciate a figure was came up with at the beginning for the creditors. He also said that some of it was down to not being paid when off sick ect so had less money and also that half of it at least was already there when the trust deed was taken out.
She said that if he volunteers or the house is repossesed with Nram they would have no option but to add it to the trust deed as another creditor but this would result in a much smaller dividend to the other creditors. Therefore should his rent/mortgage be less than it is at the moment then they would want the difference to be paid in to the trust deed (we reckon the councilr ent should be around £240 a month cheaper).
Basically that was it really. Other than to keep them updated of anything that happens with the house ect. We are quite suprised as it had been suggested that the trustee would most likely discharge my husband and leave him to dela with the debt again so it's actually a bit of a relief to know the trust deed could just carry on.
My husbands trust deed wiill be extended next Sept to collect £5000(ish) still owed on the equity from the car.
I have a couple fo questions abouthe rise of payments on the trust deed.
1) Will the trustee look again at the payments after the repossesion and just add the extra £260 per month or will the look at a whole new income and expenditure and realise that if we are struggling now then the relaity is we can't afford the full £260 a month and add on what we actually can afford?
2) Would the "upped" payments last only until next Sept when the original trust deed was due to end.
3) The trustees assistant had said that as tehy would be looking to get the £5000 from the extension they would look to see if he could afford higher payments to receive the money back quicker than the 2yrs. So if My husband was paying say £150 more a month would they just take this money until the £5000 for the equity was realised or would they carry on the extension for the full 2yrs to get even more money back since Nram would now be a creditor too.
I hope those questions make sense to someone!
Topic starter
08/12/2011 4:10 pm
Sorry got my answer to number 3, the assistant has just clarified the payments would scease once the £5000 was received regardless of how long it took. That's good news. 3wks to receive the first letter then ;iterally half an hour to clear that bit up lol
08/12/2011 5:55 pm
Hi gillianr2.
It sounds like you are starting to make a lot of progress.
The key point is that you cannot pay into your trust deed more than you can afford, not matter how much you or the trust deed firm want that to happen.
If your housing costs change you'll want to see that you agree with the figures that they have listed for your other expenses at the same time.
I'm not sure about the term; presumably they will want to collect what the trust deed is entitled to receive as quickly as you are able to pay it over though.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
08/12/2011 6:05 pm
I may have missed part of the calculation. Did you say you have arrears because of unaffordability and after you move to a more affordable solution you are expected to pay the differenc, meaning you will then be renting and not able to afford TD payments vs mortgage payments. This just seems to give the problem a different name rather than sort it?
08/12/2011 6:07 pm
I agree with your sentiment Pamjo.
That's why it's important to make sure that all of the expenditure listed matches up to what is actually being paid and/or is realistically needed.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
08/12/2011 7:32 pm
Yep that's basically it Pamjo and TD Assistant. They have stated if we move and the rent is cheaper than the mortagge we pay now then they want the difference between teh rent and the mortgage to be paid in to the td. We are hoping that when we do move the will do another income and expenditure and be more relaistic with what they expect from us. We can't really afford the £201 month we pay now to the td but they say we have to pay this amount to have that part of the td end on time next Sept before the extension begins to get the equity in the car. After we move then we will be able to pay more than the £201 but nowehre near the £460 they will expect with the difference between rent and mortgage. If push comes to shove and they don't accept doing another income and expenditure tehn I guess we have no option but to stop paying the td or only paying what we can.
08/12/2011 7:38 pm
Hi gillian2
It appears you are unable to realistically maintain payments at present and this will not improve if you move.
Is there any reason why sequestration would not be an option.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
08/12/2011 7:52 pm
Hi Mark, no there's no reason for us, we suggested it to the trustee but they said no. They said they had no intention of making him bankrupt as it's in his best interests to continue with the trust deed and that if he was made bankrupt he would have to make paymentd for another 3yrs anyway.
08/12/2011 8:04 pm
Hi Gillian2
In true doctors response, I think you need a 2nd opinion.
Hubby has just under 2 years to go and the trustee is looking for £400+ p/m plus car etc. I would seek further advice on the costs of a sequestration per month.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
08/12/2011 8:27 pm
He has actually got until next Sept and the another 2yrs to go Mark. atm he pays £201 per month until next Sept to pay the trust deed part and then they want to extend by 2yrs to collect the equity on the car so they want him to up his payments then so they can collect the full £5038 for equity in the car (which is now worth £2700 and a different car anyway). They said if we move before next sept then they want the extra money to be paid to the creditors and if it's after next sept then the extra money will mean the extension could be shortened and the full payment could be collected earlier for the equity on the car. We have suggested bankruptcy on more than one occassion and been told they have no intention of making him bankrupt unfortunately. I take it so long as we are actually making the payments then that's all they are bothered about.
08/12/2011 11:00 pm
Hi gillianr2.
It all comes down to your real and reasonable income versus expenditure.
Either you can afford to pay what is being asked for, in which case you should pay it. Alternatively you cannot afford it, in which case it cannot happen no matter what anyone says.
Have you got a copy of the numbers they are using? If not, demand it and take things from there.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
08/12/2011 11:16 pm
Mark- Reading between the lines, given gillianr2's scenario-a sequestration could be more manageable, achieve the same outcome and end sooner?
08/12/2011 11:23 pm
Hi pamjo
So often the advice is what best suits the IP, not the individual.
If finances are honestly tight then things need to be reviewed.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
09/12/2011 9:33 am
Would be interesting to see the figures they are basing your disposable income on gillianr2, to see how they match up to the generally accepted guidelines.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
09/12/2011 9:47 am
Mark I have to say its fantastic to hear an IP suggest what is blindingly obvious,even if it means ending a potentially lucrative TD!!
If there is nothing left to protect(like the house),then sequestration is clearly an option to be looked into,and I cant quite grasp why Gillians IP would suggest to just plod on with an unaffordable TD!!!
Paul
Trust deed completed Jan 2012,Trustee discharge Nov 2012.
A new dawn.
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