Hi Fedup

I can understand your anxiety, things have obviously none gone to plan for you.

In fairness to your Trustee, creditors can be a nightmare, and some do take longer than others to stop writing.

With regards to your house, if there is no equity, then there would be no point in selling your home. Was there a valuation done at the beginning of your trust deed?

Bankruptcy works in much the same way as Trust Deeds, and therefore, if there is no equity in your house, it wouldn't necessarily be sold, even in bankruptcy. In order to get into Bankruptcy, your Trustee would either have to end the Trustee, without discharging you from your debts; or the Trustee can make you bankrupt - but only if you are not co-operating & it is the best interest of your creditors.

Hi.i wasnt getting letters for a while but im not sure if its because i havent made payments or because trustees keep changing staff.Im sure house would have been valued at the start of the trust deed and at a stretch there could be around £13,000 in equity which i know wouldnt be enough to pay off my creditors,i may have a touch of ostritch symptom ( burying my head in the sand) but its due to not having the finances to cover payments and falling into arrears with other bills i just cant see a way out of my prediciment.

Hi fedup.

I think that it is likely that a valuation of your home will have taken place at the start of the trust deed. You may wish to enquire about it as it will give you a better idea as to whether your Trustee believes that there is equity in your home.

What changed with your financial position?

Do you see any prospect of it improving again soon?

It could change in the next month or 2 as my husband has possibly got some work coming up but ive changed jobs too and taken a drop in wages.

Are you hopeful you'll be able to start making contributions to the trust deed again at that point fedup?

Ive not been able to make any payments,phoned 3 times to find out if i am still actuaully IN the trust deed as im now 5 months behind with the mortgage trying hard to get other work with no success,no one else will give me any advice since i mentioned the trust deed im stuck !!

Hi fedup.

Are you saying your Trustee will not tell you whether or not you are still in a trust deed?

yes,last time i spoke to anyone and said i was unable to pay anything they said i would just go back to dealing with debt letters myself and coming to an arrangement with them myself but this wasnt actually "stated" and ive never recieved any letter to state otherwise, last corespondence recieved from trust deed was to try claiming ppi from all the companys i owed money to...my main concern at the moment is trying to hold onto my home ive been looking into the councils different options of mortgage to rent and mortgage to share equity schemes, or if bancruptcy will be an option to me but then if i declare bancruptcy will i even have an option in what happens with my home...im in a catch 22 as i cant do anything until i know if im still in the trust deed,ive waited all day again to get an answer from them !

If your home were sold fedup, would you expect there to be a surplus generated after your mortgage (and any other secured loans) are repaid?

Hi,no there wouldnt be enough equity in the property to cover debts,so would i be forced to sell?

I cannot answer the question directly fedup because it would be the decision of your trustee.

However, it's the case that the reason for selling a home in bankruptcy would be to generate funds to help repay creditors.

If the trustee didn't feel that creditors would benefit from selling the home, there would generally be no reason to do it.

System seems to be playing up couldnt just reply directly..In my situation..in arrears with mortgage..and unsure if im still in a trust deed ( since they still havent returned my calls ! ) from speaking to mortgage lenders they will send someone out to look at my finances to see if theres anything that can be done..but who would be the one to pull the plug on me the "trust deed" or the "mortgage lender" oh and i did tell lender that i might still be in a trust deed which seemed to go right over their head !

There are two different issues here fedup.

The mortgage lender may consider repossession if your mortgage arrears are significant and no workable plan to deal with them can be agreed and put into action.

A trustee (trust deed or bankruptcy) may consider the sale of your property if they believe it's required to help repay your creditors.

this is where im getting confused lol...would the trustees put the property up for sale to pay the mortgage lenders or is their priority to the debtors..should i walk away and let them fight over it 🙂 nightmare !! to be fair to mortgage lenders they have been very understanding when ive called to come to an arrangement ..mind you it would have been nice if they had explained that falling so far behind could result in losing my home but they were soooooo nice and helpful i didnt see it coming...does ayone else feel like they are just being circled by sharks waiting for the kill?? ..yes we"re all on here because we have been totally irresponsible..got ourselves in a financial pickle ( i know that wont apply to certain circumstances) but it seems to me that the trust deed companys are praying on the vulnerable..just like the banks did..and here we are full circle !!!am i wrong..is it just me??