Trust Deed Help Please

Hi Everyone

I have finally taken the first step to sorting my finances out , so cut a long story short an ex partner left me with alot of debt which unfortunalty was all in my name, this was 2 years ago and i have struggled on . I bought a new house in December 04 and thought things were looking up although i now realise i cant afford to pay all these debts plus my mortgage and have a decent life

I have been advised a trust deed would be the best way to sort things out i owe approx £40k to various creditors

my concern is when i purchased the new house i paid a 10k deposit so this is obviously equity in the property , would this mean i would have to sell before i enter a trust deed , im waiting on them clarifing things but thought i would ask on here as everyone seems so helpfull?

Comments

  • Debt_Free_Chick
    Debt_Free_Chick Posts: 13,276
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    My first thought is whether you can compromise on your "decent life" until you pay off your debts? Or, should you sell your house and rent instead (would there be a saving there?)

    For practical information about Trust Deeds and how they work, the National Debtline website has a factsheet here (I assume you live in Scotland) http://www.nationaldebtline.co.uk/scotland_factsheets/factsheet_21.php3

    HTH
    Warning ..... I'm a peri-menopausal axe-wielding maniac ;)
  • A few things about Trust Deeds (TD) you should be aware of.

    Shop about and go to several differant Insolvency Practitioners (IP) for advice.

    Do not settle for the hard sell, make it plain and straight you are going to be shopping about. It is based on a 3 year period, this will extend if you cannot meet the agreed monthly payments. The important figure for you is the total figure you agree on at the end of the 3 year period. This cannot be renegotiated if you decide you cannot meet the payments.

    Not sure about the house, I think you can buy the equity and keep it, discuss this at interview with the IP's whom you see. Do not rush into this. TD's to be any good must reach protected status after a 5 week period.

    There are other angencies which will discuss your problems for free
    CAB http://www.citizensadvice.org.uk/
    CCCS https://www.cccs.co.uk/

    good luck
  • brackem
    brackem Posts: 10 Forumite
    Hi

    no renting is much more expensive where we live

    sorry when i say decent i mean able to eat etc without having to use credit cards to pay shopping bills, we have cut all luxuries out

    yes we live in scotland

    i think the trust deed sounds a good idea but im concerned about the house , my partner contibutes to the cost but its not in his name so he has no hold over the house as far as my creditors are concerned.
  • brackem wrote:
    my partner contibutes to the cost but its not in his name so he has no hold over the house as far as my creditors are concerned.
    Can you not transfer it into your partners name?
  • brackem
    brackem Posts: 10 Forumite
    Yes i could do that , although he dosnt earn enough to get a mortgage of that value , could it be transferred to him but the mortgage stay in my name?

    sorry if my questions are stupid , im just really unsure what to do for the best , with the trust deed i see an end in sight , with a dmp i would be paying for years
  • Paul_Varjak
    Paul_Varjak Posts: 4,627
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    Can you get just the equity in your property transferred to the trust?
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