Where Now ?

geesabrek

hi folks i need a wee bit of advice and have few questions

i am 5 months into a trust deed. Got here due to a reduction in o/t at work (i used to earn around £1200 a month in overtime) and thus ran up massive debts.

the first item i need help with is i dont have any equity in my house and the trustee is wanting me to get a third party to buy out my interest in my property for £500 to protect it. if i can manage to get someone to do this what hold would the third party have in my house ?

No 2 there has now been a further change at work and it looks like there is not going to be any overtime at all. This will mean that i wont be able to pay my trust deed. when we done the income outgoings i included around £500 a month for overtime and i currently pay £380 a month to my trust deed. i am at present trying to get a second or different job that will allow me to continue to pay the trust deed is this the best way to go or am i better just bitting the bullet and go for sequestration ?

No 3Why should i continue with the trust deed and not enter sequestration as both will stay on my credit report for the same amount of time ?

No 4 my wifes credit rating is fine and she has a couple of credit cards and a loan how would me entering sequestration affect her credit rating ?

thanks in advance

RAS

Hi Scotland is very different. coolcait and penguin83 are good to pm and ask.

in the meantime talk to NDL, who have their scottish facts more up to date than most

http://www.nationaldebtline.co.uk/scotland/

Do you and the missus have any joint accounts?

geesabrek

we still have a joint account with the halifax but we have not used it for around 10 months ius it best to close this ?

RAS

Yes.

penguin83 is around at the mo, but her PM box is full.

MrsTinks

Definitely close the joint account straight away and make sure you have in writing that it is closed before you do anything else.

geesabrek

ill get it closed tommorrow

coolcait

geesabrek wrote: »

hi folks i need a wee bit of advice and have few questions

i am 5 months into a trust deed. Got here due to a reduction in o/t at work (i used to earn around £1200 a month in overtime) and thus ran up massive debts.

the first item i need help with is i dont have any equity in my house and the trustee is wanting me to get a third party to buy out my interest in my property for £500 to protect it. if i can manage to get someone to do this what hold would the third party have in my house ?

No 2 there has now been a further change at work and it looks like there is not going to be any overtime at all. This will mean that i wont be able to pay my trust deed. when we done the income outgoings i included around £500 a month for overtime and i currently pay £380 a month to my trust deed. i am at present trying to get a second or different job that will allow me to continue to pay the trust deed is this the best way to go or am i better just bitting the bullet and go for sequestration ?

No 3Why should i continue with the trust deed and not enter sequestration as both will stay on my credit report for the same amount of time ?

No 4 my wifes credit rating is fine and she has a couple of credit cards and a loan how would me entering sequestration affect her credit rating ?

thanks in advance

Hiya geesabrek, and welcome. Sorry to hear about the problems you're having

I'll try to answer your questions in the same order you've asked them.

1) If a third party buys out the trustee's interest in the property for a nominal sum, that shouldn't give them any kind of right to the title of the property. It would do no harm to discuss this concern with the trustee as he should be able to reassure you on this point. As with anything else though, get legal advice, or ask your local CAB to look over the agreement, before you sign anything to do with the property. You could look at it as having family or friends pay £500 into the Protected Trust Deed (PTD) to get the trustee off your back about the property . It shouldn't be seen, or used, as a way for someone else to get any kind of right to the property (I'm only talking about paying nominal sums here - if a third party was paying a significant amount, that might give them some rights to title in some cases)

2) If you're not going to be able to keep up the agreed payments, the first thing you have to do is discuss it with the trustee, and see if he will agree to change the payments - even for a few months, with a review after that time. As for sequestration...

3) I'm afraid that you can't apply for your own bankruptcy/sequestration if you're in a PTD. Your trustee could apply to sequestrate you if you fail to meet the terms of the PTD. However, although he could do it, he's not obliged to do it - and there's no guarantee that he will do it. I know that at least one other FM on MSE is caught in that Catch 22 just now. However, there's certainly no harm in raising the subject with your trustee - especially if you're already having a discusson about your difficulties in paying the agreed contribution. If nothing else it will give you an idea how likely he is to go for sequestration - once you know that, you can have a think about what to do next.

4) I think the other FMs have answered that one far better than I could have!

I know it's not entirely good news, but I hope it helps you a bit. And I'd encourage you to have a word with NDL, or a local advice office - whether CAB or run by the local council - just to get some more views on the situation.

Good luck!

geesabrek

if my trustee did not put me forward for sequestration due to me not bieng able to pay the trust deed what other action could they take ?
i am not looking to wriggle out of the trust deed to an easier option but in feb wage i wont have any overtime any the company i work for have now started a weekend shift and so after bieng there for 10 years enjoying 25 % above my wage on overtime i will have none