What asset did the trustee say the £3000 payment was for? Certainly the £7000 ppi reclaim would not be put towards buying out the equity in the house I'm afraid, your trustee is quite right on this point.

Did the trustee organise a visit to your home to do the valuation? It is quite unusual in today's market for a property to be worth significantly more now than 3 or 4 years ago. Maybe you could consider getting a valuation done yourself - it could strengthen your hand in your negotiations.

Regarding the potential alienation, it sounds as if you have had some advice already. If you were solvent at any point after effecting the transfer then you have a defence against an alienation action, ie your assets were greater than your liabilities. Crucially, though, it is the position AFTER the transfer which is important, not before. If transferring the property had the result of rendering you insolvent then it could be an alienation.

Thank you for your reply. Regarding the £3000 the trustee said that it was a seperate asset. When I made the payment it was stressed that this was a part payment of equity so confused as to his opinion regarding the payment. The trustee sent his own agent to value the house. there are two propertys for sale in my street, starting at £180000 both have since been dropped in price to offers around £170000 plus both houses have been on the market for over 5 months.After the transfer my assets where more than my debts at that point in time, I have a detailed credit report showing this. Trustee being really unhelpfull , after all for the fees I have paid I would expect a minimum level of service. So if the £7000 is not to be included £3000 has been paid and I can raise another £5000 , leaving £7000 outstanding could I argue the case that his valuation was not correct and the amount of equity is not as high which was borne out by the valuation by the Halifax. Plus the current value of property in my street and the last recorded sale which was £165000.I think I will get a valuation done to further support my claim.

sorry forgot to ask what happens to the £7000 in PPI claims now ?.

Hi pinalta.

I think you need to ask what asset the £3000 was for. Is there a car involved as an asset in your trust deed as well?

Getting some evidence to support your position that the equity is being overstated could very much help you in your negotiations.

The £7000 from the PPI claim is a different asset and unconnected to your home. It goes into your trust deed and will be used to help cover the trust deed fees and to fund a dividend to be paid to your creditors.

£3000 was to be used as a part equity payment I confirmed this with the trustees assistant when I met with her to discuss what was happening with the Halifax. What I don't understand is how the trustee can keep taking more money off me . when we agreed that £15000 was a final sum.So any other funds that I can realise will not count as equity payment.So I could add funds forever and still be TRAPPED in the deed.I think the trustee has shot himself by putting a schedule of inhabition on the house , thus stopping me from raising the very thing he is asking for !!. There is no car involved. I have some wine which was gifted to me to raise funds to pay into the deed , which I told the trustee about when the sale goes ahead from what I understand thats just more money into the deed but nothing to do with paying of the equity.Any advice you can give me will be helpfull , all I want to do is pay the agreed amount which I am able to do, very upseting that money can be constantly taken but still leaving me in the same position.

Hi Pinalta

Can you clarify if you own the property or was it transferred.

Is the trustee threatening an Action of Reduction. I'm a bit confused as to why the property was included if you didn't own it.
Mark

Am I right in thinking that you gave away a half share of the house? That would be ok if you could still repay your debts, but basically you have given an asset away for nothing, whilst you were due creditors money.
As for the PPI, it is a different asset, and would go in the pot for creditors, but nothing to do with the equity.
I think your main chance of success is to have the equity figure reduced, so as Kevin suggested, I would get a valuation from a reputable surveyor.
As you have already paid £3,000, it is shame they gave you nothing in writing.

Im still unsure how the trustee can seek any payment if the property isnt owned.

Mark

The house is jointly owned between my wife and myself , she is also on the mortgage . At the date of transfering the property into joint names I can prove through my detailed credit report that my assets where more than my debts at that time. A failed business venture left me with big debts and stupidly borrowed on my credit cards etc to try and keep the wolf from the door instead of seeking help straight away.
What I understand is that I should get the house re-valued to try and back up my claim , what I don't understand is that the trustee valued the house much lower for over 5 years then when I tried to close the deed got a clearly inflated valuation , which is borne out by the Halifax's valuation (£10000 less )have been told that I could have fixed the value of the house at the start of the deed , this option was never offered to me , nor was I informed that at a later date it would be re-valued.Regarding the £3000 I was explisit that this was a part equity payment until I tried to get things moving with the Halifax.So I must stick to my guns regarding this as that would another waste of my money.If I sort out the £15.000 , would I get the £3000 back as well as the £7000 in PPI payments, plus I have money coming from the sale of the wine, all money into the pot but still stuck in limbo.Could I pay £5000 which I could raise to add to the £3000 and try and arrange payment of the outstanding £7000 ?. Failing that I would establish that I was solvent at the time of the transfer , but this will take up more solicitors fees , which could be paid into the deed to try and close it.Also not sure how long this would take , plus the added stress.Just want to pay the sum which was agreed , not looking for more stress and worry , really need a solution as I fear for my health and if I am off sick I dont get any company sick pay.Any advice as to a workable proposal to the trustee could be worked out would be most helpfull. Thanks for all your help so far.

Hi pinalta.

It does seem that different trust deed firms go about dealing with equity in slightly different ways. Each uses their own interpretation of the guidance and rules applicable to that point in time. Things may well have been done a little differently five years ago compared to now.

The subject of valuations is tricky. Ultimately they are just informed opinions and different valuers will often put different values on the same property. As discussed already on the thread and in your most recent post getting another valuation makes sense if you dispute the one being relied upon.

If you cannot (or will not) meet the current requests of your trustee you may wish to consider putting the best offer that you can on the table to them. It's really for you to make a commercial case that your trustee can justify to your creditors as being the best deal they're likely to get.
Alternatively you may wish to continue with seeking legal advice on your position.

Perhaps the £3000 can only be taken as payment towards equity if a 3rd part pays it?
My reading between the lines-any additional money you can raise is expected to make it a better return for those owed money.

I'm not sure if your trustee has any flexibility over the payment needing to be paid by a 3rd party.

Sorry if I misunderstood Pinalta- was the £3000 paid by you after your PTD ended? If so, it seems odd to describe it as anything other than payment toward equity.

Perhaps the question is what the trustee considers that payment was for. There's no reason why they shouldn't be able to specify that.

Hi pinalta

I understand now that the property was owned solely and transferred into joint names. As this is in joint names and was at the time of the Trust Deed, then the Trustee will seek half the equity irrespective of solvency.

Can you clarify:

Exactly the date you signed the Trust Deed and also exactly the date the inhibition was served on you.

What asset the Trustee is stating the £3k payment was for. There has been mention of 'another asset' but nothing specific.

Under what part of the legislation or guidance could your Trustee have 'fixed' the equity at the start. Was the equity stated at nil when you signed the Trust Deed.

Mark