Hi Annie

Well this is a new one. People are asked for £500 for no equity for no reason, now it appears they are using the £500 or strangely £500 x 2 for a house with equity.

I think you will need to speak with the firm you have spoken with for clarification as it is difficult to comment ( or comprehend)

Mark

ANOTHER QUICK QUESTION WOULD WE BE EXPECTED TO MAKE A MONTHLY CONTRIBUTION TOWARDS SEQUESTRATION

Hi Annie

Did the person you met with/speak to offer any advice?

An income and expenditure should be carried out and if there is a surplus, then the Trustee will seek a contribution. It's the reason why you need this and the equity/no equity position absolutely clarified before doing anything.

Mark

YES DID AN INCOME AND EXPENDITURE . WORKS WITH ONE OF THE RECOMMENDE FIRMS ON HERE ITS THE £500 THING THATS WORRYING ME WHY AND WHEN WOULD YOU NEED TO PAY THIS

Hi Annie

It's something you'll need to discuss with the firm in question as I have no specific details/information to provide any advice/comments. Firms will have their own 'interpretation' of how specific matters should be dealt with, some I may agree with and some I won't, but only the firm in question can answer the points.

I'm sure they can advise further.

Mark

A trustee in a sequestration has a duty to seek to gather in whatever equity a debtor has so, as Mark says, it is a little strange that you are being asked for £500 each whereas the equity is twice that.

Also, the equity would normally have to be paid for by a third party, not yourselves, as if you had £1000 saved then this should be paid towards your debts anyway, quite apart from the equity.

DOES THIS MEAN THAT OUR HOUSE IS AT RISK

Hello Annie.

Hopefully not, Kevin and Mark are trying to help you to avoid that risk by making sure you understand the position before you commit. Sequestration is serious though, so you're right to be cautious.

What is the £2000 equity based on? Has there been a formal valuation?

I'd be very surprised if there was a serious risk to your house based on £2k equity

NO FORMAL SURVEY JUST VERBAL FROM A TRUSTED SURVEYORS COMPANY

Annie,get everything in writing before you proceed ,particularly re house.ask the questions you need to ask re this and get answers backed up in writing.its ok to ask....you need to ...too much is at stake and honest you will feel better for doing it.your firm should only be to happy to do this and if your gut isn't happy with response run a mile and speak to one of the guys on here.

I think it would be wise to insist upon a proper valuation before going ahead, annie. Maybe I've been on here too long, but too many people have been caught out after being told "everything will be fine.."

SO WHY IS THERE A NEED TO PAY £500

Hi
I would agree with Kevin that it is unlikely that you would lose your home for £2000. However, the equity needs to be established first, and that can only be done if a valuation is carried out. Believe me, if this is not done that is when problems arise later. It may be that if there is little, or no equity, the trustee is prepared to accept £500 in order to renounce his interest in your property, ie. he will not value it again at a letter stage. That being said, it is normally £500 per property, not per person. This is the recommended amount in the Accountant in Bankruptcy's guidance to trustees.
It sounds as though you are not sure about the facts, so ask for a meeting, and then get everything in writing before you sign