Can I have a bit of advice please

jackie_w · 15 October 2008 at 12:15PM

Hi,

I had originally posted on the DFW board, but, thought I would come on here for some advice.

My sis had an appointment with an Insolvency Practitioner yesterday, he is coming back out to her house on Friday for her to sign all the paper work.

At the moment, there is no equity in her house, as its mortgaged to the max. This man said that she would need to pay £1000 to protect any future equity on her home so that her creditors cant come back and tell her to sell her house to release the equity to pay her debts.

Is this correct, if so, why is someone who is in debt being asked to pay this large sum of money. She has asked me for a loan of this money, and I want to make sure she isnt getting conned.

Unfortunately, she hasnt spoken to CCCS or any other orginaisation to get independent/impartial advice, and has spoken to this man as he was recommended by someone she works with. She wont go to the CCCS as she is anxious to get this all sorted out quickly.

Jackie xx

peachyprice · 15 October 2008 at 12:28PM

No, No, No, No, No!!!!

Sorry to shout, but this is absolute bullsh!t, tell her to ditch the Iinsolvency Practitioner immediatley, he's ripping her off and she doesn't need him.

That is a complete and utter lie. if she goes BR the most she will have to pay the OR for her beneficial interest (her share of the equity) in the house is £1 + £211 solicitors fee, this isn't to protect her from creditors, because once she's BR they have no rights to her house, it's to release her beneficial interest from the OR. If she's in negative equity and is confident that it will remain that way for the next 3 years she doesn't even have to do that if she can't afford it.

Please tell her not to pay a penny to anyone for help with her BR. All this practioner can do is help her fill in the forms, after that she will have to go to court by herself, and will have to have the OR interview by herself. These vultures charge an absolute fortune to fill in a few forms. She will have to pay court and insolvency service fees, but these are only £495. I bet he's charging that on top.

If this IP has advised her that bankruptcy is the best way forward and she's happy with that she can do the rest by herself, it really is a very simple process. But I must stress the importance of her speaking to one of the FREE debt charities just to confirm that this is best for her.

Please don't let her part with any money to this IP. Is there anyway you can get her to have a read here, and/or be with her on Friday when he comes back.

imcognito · 15 October 2008 at 12:28PM

Hiya

No thats not right, if she goes bankrupt and there is no equity the OR Would let someone (you) buy back the benficial interest in the propery for £1 +£211 fees .
I really would not pay out £1000 for the priviledge.

She really should get impartial advice tho. I rang payplan and got advice straight away no waiting.

Im x

dalip · 15 October 2008 at 12:34PM

Please listen to peachy she is right. Under no circumstances must she sign anything. Is she able to come onto the forum herself?. We will do exactly the same as this chap but we don't charge a penny. Oh and we tell the truth not a load of lies.Some phone numbers in my sig she could try.Dx

fermi · 15 October 2008 at 12:36PM

From a quick scan of your thread on DFW (She didnt go to CCCS) this is an IVA or Scottish trust deed isn't it?

Can you confirm that, and if she lives in Scotland?

However, wherever you are based you must really seek some impartial advice.

Don't depend on a salesman or IP to be impartial or act in your sister's genuine best interest.

milliemonster · 15 October 2008 at 12:39PM

Hi guys, I'm from the DFW board and we've been trying to help advise Jackie, her sister is in Scotland and this IP has been to see her about a Trust Deed/IVA to avoid Bankruptcy and has told her that this £1000 fee will protect her house from being taken if she does end up going BR during the course of the IVA, can you advise?, us lot seem to be getting nowehere!!!

RAS · 15 October 2008 at 12:41PM

Hi

Just to explain to people that sister is intending to do a trust deed (Scottish IVA) but the Insolvency Practitioner is suggesting a deal by which she pays a £1000 fee and somehow this protects the equity in the house.

Have suggested to Jackie that BK and buying the BI might be cheaper and more effective as she has no equity at present.

Or rather that sister needs to get proper advice on all her options rather than just rushing into this trust deed which may not work.

jackie_w · 15 October 2008 at 2:30PM

Hi everyone,

Many thanks for your replies. My sister has asked me for a loan of the £1000.

Earlier this morning I told her that I would give it to her, but, she must seek impartial advice. I told her to even called Money Matters which is run by our local council offices to see if she could get any advice from them.
Well she has, and she has explained it all to them (I really didnt think she would have called them, but, she has), anyway, she has to go and see them tomorrow morning, and has to take all her paperwork with her.

Apparently its just the duty officer that she will be seeing, so, I dont know what kind of info he will give her, but, hopefully, he will be able to shed some light on the situation with regards to this £1000.

Thanks again for all your replies.

Jackie

elie-hopeful · 15 October 2008 at 4:07PM

hi, I am new to this as well, I live in Scotland and I was interested to read this thread as I am also seeking advice about a Scottish Trust deed or maybe bankrupcy. I have been in a debt repayment plan arranged by citizens advice for over a year, despite making regular payments one of my creditors has now taken out a court order on me, to repay the full amount of a loan, (which I cannot do,) I have tried various means of getting advice about this including the cccs, who said that they could not advise me about either a trusted or bankrupcy but advised me to pay more to this creditor and less to the others in order to stop court proceedings (I was under the impression that you should not favour one creditor over another?). I would be interested to hear about how your sister gets on????

I have had some advice and believe that by someone making payments as an interested party, this can protect your property from being sold. and that you only need to come up with whatever the equity on your property is????? anybody able to shed light on this?. I was also advised that if i do go down the route of bankrupcy the fee is £100 made payable to the accountant for bankrupcy. At the moment I am still bewildered, confused and panicked. I seem to have been given so many different versions of advice and no definate answers about the best way for me to go? Any advice would be appreciated.

coolcait · 15 October 2008 at 5:39PM

Hiya

Very quick note as I'm on chauffeur duty for the kids :rolleyes: .

I am VERY wary of Trust deeds. I know a lot of IPs seem to have ways of 'protecting' the equity in properties, but I've also heard of people being asked for money towards the end of the Trust Deed.

Payment up front is also a new one to me.

If the Trust Deed doesn't get protected, the IP can make her bankrupt. So can one of her creditors. She can do it herself. But I don't think that any agreement made in the Trust Deed will be carried over into the bankruptcy. If there's equity, the Trustee in the bankruptcy will be interested in it.

It's worthwhile asking about the Debt Arrangement Scheme www.moneyscotland.gov.uk - it involves paying back the debts, but interest will be frozen, and creditors won't be able to take action against the person who is in the scheme.

Good luck!

Can I have a bit of advice please

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