It appears that the level of your debt is less than value of your assets - you are not insolvent.

Have you considered selling your property to clear your debt?>

Hi-thanks for your reply- I am considering it but I am surrounded by similar properties that have been up for sale for ages with hardly any interest. But it is perhaps something I should consider more.

It appears that the level of your debt is less than value of your assets - you are not insolvent.

Have you considered selling your property to clear your debt?>

Hi sandyboy and welcome to the forum.

Is your business a limited company or do you work as a sole trader?

Is your home jointly owned?

The answers to those questions will help the experts to provide their thoughts. However, if you are worried about being able to maintain a DMP payment, the same worry would probably apply to a Trust Deed payment as well with more serious consequences were the arrangement to fail.

Hello-I am a sole trader. It was a thriving business but like many it has been severely hit by the recession and I am only there now as I still have 4 years to run on my lease.
My house is jointly owned with my wife

Hi sandyboy and welcome to the forum.

Is your business a limited company or do you work as a sole trader?

Is your home jointly owned?

The answers to those questions will help the experts to provide their thoughts. However, if you are worried about being able to maintain a DMP payment, the same worry would probably apply to a Trust Deed payment as well with more serious consequences were the arrangement to fail.

Does your wife have any debts as well sandyboy?

No-the few things she has, are paid up so far and don't amount to more than 3k. Does your wife have any debts as well sandyboy?

Hi Sandyboy

The way I see your situation from the information provided is as follows

60k unsecured debts

Equity of approximately 30k to 40k, on the basis that half of the equity is your wife's.

The most appropriate solution for your circumstances will really depend on your household income or expenditure. Have you been in touch with an Independant Financial advisor in relation to any possibility of a re-mortgage?

The reason I ask is that if you have no disposable income there may be something called an 'asset only' Trust Deed available, this would be dependant on your ability to release your half share of the equity, and your ability to finance any new mortgage put in place.

Please be aware that I am not suggesting this as an option merely suggesting it may be worth looking into from the information as presented.

Should you have other numerous assets or sufficient disposable income it may of course not be suitable.

Thanks sandyboy,

Contrary to a previous comment you would appear to be insolvent.
This is because your share of the equity appears to be ?ú30000-?ú40000 while your debts appear to ?ú60000.
This is relevant to whether a Trust Deed might be an available option, though the question as to whether it is an appropriate option is different.

If you are not in a position to be able to make a regular monthly payment towards the debt you may need to consider whether the sale of your home might be necessary.

If you were to sell the home and generate ?ú60000 from the sale the debts could be repaid in full.

Alternatively you might look into the possibility of a Trust Deed using your share of the lump-sum (?ú30000) rather than monthly repayments if they are not affordable. This could protect your wife's share of the equity while dealing with the debts at the same time.

Keep checking into the forum because the other contributors may have further thoughts and ideas.

Trust Deed Assistant is right. A trust deed may be an option, but your share of the equity in the property would have to be realised to pay towards your debts - this might prove tricky short of selling the house.

Do you expect that your business may start paicking up again before long? It may be that a temporary arrangement can be agreed with creditors where you pay a small amount to each in return for them freezing interest, with the intention that you would increase your payments again in future and repay the debts when you can.

Whilst considering the valid points made by Kevin i would suggest you also consider the value, if any, of the leasehold mentioned in previous comments as this may also be considered an asset which may have a value in transferring to another party.

there has also been no mention of stock, fixtures and fittings within the leasehold property. these again may have a value which has to be realised for the benefit of creditors in any Insolvent situation.

If "tools of trade" they would be exempt - unable to identify what type of trading entity from previous comments.

What I am advocating is Think first, seek some FREE advice from a reputable IP or Senior Staff member about your situation and then consider all the options available.