Trust deed

usednote

Hi, due to ill health I have had to make just the minimal £1.00 per month payments to my creditors which amount to around £ 90K. This has been going on for two years odd and during this time I have been supported financially by my son (in excess of 30k to date).
My health issues are still being resolved and the pressures of this situation are starting to cause problems, although all my creditors are accepting the minimal payments at the moment.

I have around 100k equity in my home on which there is a small mortgage and is in joint names with my wife (also with 100k equity). My son cannot or will not raise a loan to buy out my share of my equity in the house but he is still supporting me.

I would like to hand my equity in the property to my son (via a trust deed that is being drawn up by a solicitor).in order that he get some benefit for the funds he is providing and to avoid any resentment from my daughter in law.

This seems to be a solution to my fears of being made to sell my home to pay off unsecured debts that I intend to clear when I can return to work.
I read stories of creditors ravaging peoples equity because they want payment quickly and have been seeking a way of avoiding this. I will clear my debts, but from income, NOT the sale of my home.

1 How well dose the above protect the equity, once I have transferred it

2 Would a creditor be likely to try and get this undone ( the biggest is 20k)

3 If so how likely are they to succeed

4 Is there a better way to protect my home from being sold to pay off debts.

Any thoughts or advice greatly appreciated.

Happytogetdebtfree

No advice to offer just wanted it bumping for you x

DEVONLIFE_2

Hi usednote
I suggest you phone the CCCS on 0800 138 1111. They will be able to give you some advice. The other group would be the CAB in your local town.Hope you get this sorted. DL.

Tixy

I'm not sure a creditor could 'ravage' your equity. Do any of your creditors have CCJs against you?

It may be your creditors would try to get a charging order against your house, this would be a debt secured on the house but it is exceptionally rare for a judge to order a forced sale following a charging order.

Therefore even with a charging order if you do not sell then this would not usually allow them to access the equity in your house, and you could continue to repay the debt from your income.

Is it realistic that you will ever be able to pay back £90k from your income?

I am certainly no expert in such things but I believe that transferring the property into your son's name would be looked at unfavourably by the courts, certainly if a creditor applied to make you bankrupt I think this transfer at well under value would be ignored as it could be seen as a deliberate way of avoiding paying off your debts.

Did the solicitor handling your affairs suggest that you did this transfer in order to protect your equity from the debts? Or did you just instruct them to do it?

There are posters on the forum who are better placed to advise on this issue so do keep checking back this evening or tomorrow to see if you have had more replies.

usednote

No ccjs against me and no pressure either. I could clear these debts once back to work and given a reasonable time to do so. I just want to ensure that this ends up being the case.

I understood that transfering my equity via this trust deed in lieu of past and future payments to me from my son, would effectively stop a creditor from getting a charging order on the home as 'I' no longer have it as an asset, having used it to generate previous and future income.

I would very much appreciate any clarification on this please.

usednote

Bump

Anyone:)

property.advert

Again, I find this evidence madness as if I were your creditor I would have already had a charge on your property but they prevaricate and do nothing.

I think the easiest thing would be to do a Jonathan Aitken and have your wife as the only name on the deeds. Of course, were you to go BR then it could come back and end up on your plate as deliberate. I don't understand the reference to your son nor why he should feel the need to give you £100,000 ?

I would think that unless you start paying, moves will be made for CCJs and then COs at least on some accounts. Once you have a CO, they can come in floods.

You don't mention your wife. Why not, doesn't she know ?

You also mention work and paying them off but what you are trying to do is run and hide and not pay them back. Which is it ? I'm guessing run and hide ? Different arguments depending on your being realistic.

A strange but possible idea might be for you to sell to transfer to your wife and you to take a second charge on the property ?

DVardysShadow

Hmm. I think you should already be handing your son some of the equity in exchange for the support he has been giving - if this money can be shown to have changed hands. This will also make the property more messy and less attractive for your creditors - but you do need to be able to prove that you have actually received money from your son, otherwise it looks like you are squirrelling away wealth.

As for your health, you have been off work for 2 years. Is it realistic to go back? Forgive me this, but sometimes people in debt have their heads in the sand - if it is less than certain that you will go back, it would be better to plan appropriately from the earliest.

usednote

DVardysShadow wrote: »

Hmm. I think you should already be handing your son some of the equity in exchange for the support he has been giving - if this money can be shown to have changed hands. This will also make the property more messy and less attractive for your creditors - but you do need to be able to prove that you have actually received money from your son, otherwise it looks like you are squirrelling away wealth.

As for your health, you have been off work for 2 years. Is it realistic to go back? Forgive me this, but sometimes people in debt have their heads in the sand - if it is less than certain that you will go back, it would be better to plan appropriately from the earliest.

Thanks for the reply dvs, we can absolutely prove receipts from my son on both his and my wife's bank statements. I am not on any benefits and am not trying to avoid paying off these debts.
I am at the fag end of creating a new means of earning a living from home which is linked to my original manual trade. This has kept me sane and my pride intact throughout the period that I feared my life was falling apart.

That is my motive, to resolve my health bombshell on my terms,my way, without some !!!!! in a credit department throwing turds at my fan.

I've been in business for over 40 years, employing people, paying tax, rent, rates, dealing with all the crap the government throw at the self employed and just about survived.

I have put a lot into the business mix over the years and will probably continue to do so but if I lose control of the equity in my home I think I shall say sod it.



I just need some time and any peace of mind I can get, so removing my main and crucial asset to a safe place seems perfectly moral to me.

My debts were all agreed as unsecured, I paid top rates on them and at one point, one of the card companies decided to double my interest rate overnight to just under 30%.

I take the view that my creditors costed in bad loans and problem accounts with these high rates of interest, yet can then get their debt secured outside the original agreement I entered into with them. At no point was it pointed out to me that my home maybe be at risk if I failed to keep up the repayments. That was not on anything I signed up to.

So, if they can use the law to work around selling finance's unsecured in the full(seemingly immoral) knowledge of charging orders etc, and not pointing this out to the customer, then I feel more that justified in taking similar, seemingly immoral steps to stop them from doing so.

I can't tell you how stressed I am about this.