If it's a joint mortgage then if there's negative equity your ex partner would be responsible for half of the negative would she not? I would def seek legal advice on this.

If the mortgage is not being paid or you voluntary surrender the property, then the mortgage company will take possession of the property and expose this for sale. I'm not sure if your husband is in the property, if so they will need to raise an action to evict if not then they will need to go through the repossession process.

Once sold the shortfall will be claim in the trust deed, but the will pursue your husband for the full balance, not half.

Mark

Thanks Mark. Ex is not in the property. Just me and the kids. Would not having the other signature have any relevance to this process or would the repossession simply contimue in its absence....even if the ex was deemed mentally incapable of signing or being able to comment / intervene on proceedings?

Thanks again

If they don't have the signature of you ex, they will need to go through the formal reposession process to allow for the sale of the property, irrespective of his consent or ability.

Mark

Hi. I've had a look around...The Homeowner and Debtor Protection Act 2010. It references that voluntary surrender can be achieved so long as all "entitled residents" agree or if the property is vacant. So... If I vacate and sign to declare that its vacant and not the residency of anyone, then the voluntary route looks possible. Regardless....if the formal repossession process becomes required I can't see how this changes things, so long as this concludes before my discharge from TD so that hopefully the shortfall can be incorporated into my TD. And if the formal process is required, this may be a good thing because the ex would at least have been officially notified.

Think I need to get a solicitor unfortunately, just to square this off and to ensure I'm covered in all aspects.

Probably best, TOTF. You might be able to get legal advice without having to fork out for it if you look around. There are some good free legal services dotted about, through the likes of the CABx or Shelter for example.

Regarding any shortfall, you don't need to worry about whether this happens before or after the end of your discharge, the lender cannot chase you for it. You are discharged from all debts existing prior to the date you signed the trust deed. If the secured lender wants to make a claim in the trust deed they can, by valuing their security and claiming for the estimated shortfall.

Hi. Further to my posts on this subject from last year... the property has now been repossessed. The bank have sold the property. My credit file shows a default mortgage balance of circa £26,000 ( the balance between the sale price and the mortgage balance at the date of sale) and a default balance on the secured loan I had with the property of circa £7,000. This equates to circa £33,000 of "new" unsecured debt which I obviously did not have at the beginning of my trust deed last year. I understand from previous conversations that these debts will now fall into my trust deed. As things stand, this new debt effectively doubles the size of the total debt in my trust debt and will therefore reduce the dividend to creditors by around half. I'm wondering what happens now? Do I keep making the same monthly payments for the remainder 2 years of my trust deed and finish at that time ( subject of course to the annual reviews which may result in a varying monthly contribution based on income v expenditure )? Or will I be required to continue making payments for additional years until the "pence in the pound" calculation contained in my trust deed is available to return to creditors?

I'm just worried that this doubling of total debt in my trust deed will have consequences for me through paying more for longer.

Thanks again everyone.

Hi Thinkingofthrfuture

No, the trust deed should run its normal course with the same payments.

It's a contingent debt and is added to the others debts, so will rank alongside these.

When proposals are submitted to creditors, all figures are estimated, so the final combined figure cannot really be accurately given at that time and are only really known when all claims are received. The adjustment in figures can easily alter the initial dividend, however the trust deed under the old regulations can be closed wih a reduced dividend or even a nil dividend to creditors.

Mark

Hi. I've had a look at my other posts from last year and i think I have the answer on this one already!. Looks like I should speak to my trustee now and ask them what their plans are...whether they are willing to close the trust deed as normal at the end of the term or ask me for additional contribution to bring the dividend back up. Is this right? Thanks again.

Yes, probably best to check your trustees thoughts, Thinkingofthefuture. At least then you will know for sure.

OK, thanks again everyone.

Hi Thinkingof the future

It's another one of those slightly unfair arguments taken by some, but thankfully very few, Trustees that any new debt changes the dividend proposed at the start and therefore they are unable to close. However if their fees are way in excess of the initial proposed figues, thereby reducing the dividend, then that is fine to close!

Mark