Anyone sequestrated after failed trust deed?

my_last_rolo

Hi

My OH and I have been in a protected trust deed since Dec 2007, but have not been able to meet the payments as he lost his job in Oct last year. Last week we got the letter I knew was coming (and dreading) saying that the trustee was sequestrating us due to level of arrears.

We are in neg equity, arrears with the mort but have been in an arrangement for 5mths (lender ok with this), no other assets (received letter confirming no interest in car, though it's not worth much and sits in drive cause it's broken).

OH has got a 3mth contract starting on Monday :j that may be extended, and when we told trustee they said that we could either go ahead with bankruptcy or start trust deed again. I called the national debtline scotland and the lady said that as no assets we may be better taking bankruptcy, and in 3mths we could be in same position again.

So just wondering if anyone's been through this? I can't sleep for thinking about - while OH is snoring away :rolleyes: Do we have to appear in court? Do I need a solicitor? What about our house? (we have 3 young children). Am so scared

Thanks

Sososad

Hi Jay, not sure on this one, hopefully someone with more experience will be along shortly.

Take care x

coolcait

Hiya jay-c

If your (Trust Deed) trustee is going to sequestrate you, you wouldn't really have to get a solicitor, or appear in court unless you wanted to contest it.

If your house is in negative equity, when you are sequestrated, then the Trustee in your bankruptcy will probably allow you to buy out the interest for a nominal sum (around £500). My personal view is that it makes a lot of sense to try to get that done asap, and get it formally acknowledged, so that you don't have to worry if the equity increases in the course of the bankruptcy (and, remember that - although you're discharged after a year - the bankruptcy administration continues until the trustee is discharged).

FWIW, as current legislation stands, a family home actually has more protection under bankruptcy legislation than it does under Trust Deed legislation.

good luck, and I hope you've managed to have some sleep since you first posted this!!

my_last_rolo

Hi coolcait & thanks for that info, definitely not contesting it so thats one less thing to worry about.

Our IP called us back at last yesterday (at last) and will start the proceedings :eek: so am feeling a mixture of relief and apprehension. Will just have to wait and see what happens.

Thanks again.