BR after a trust deed?

JL67

Hi folks, i am in a trust deed at the moment and the bank have recently repossessed my house, after the sale i could end up owing in excess of £60,000 to the bank as they have listed it at 60 grand less than i owe, i have spoken with my trustee and they dont think i will be able to add this amount to the deed or even if the bank would be willing to agree as they would become the main creditor, so i have spoken about BR..
My current trustee cant represent me in this process but would there advice count as me seeking legal advice or would i have to speak with an independant source, i live in scotland and i know things are a bit different, Past the worrying stage as they cant take what i dont have but just looking for a clean fresh start and this now seems my only option..

Also meant to say i am currently paying into a final salary pension could the bank make claim to this if i go BR ?

JL

IF

Bumping up the board.........x

coolcait

Hi JL67

Did you speak to your actual trustee, or to your relationship manager, caseworker, etc?

I ask, because I think you may have been given the wrong advice - and if you speak to the actual trustee that might be cleared up.

Also, is your trustee based in Scotland? When did you sign your TD? Sorry for so many questions, but the answers might help explain why you have been given the advice you got.

As I understand it, the shortfall would be included in your TD.

There is one exception to that approach, but it would only affect people who signed a TD after November 2010 and the TD formally excluded the secured debt. As far as I know, very few TDs fall into that category - precisely because of the risk that the person would end up paying for a shortfall further down the line.

I'm not sure why your trustee is talking about the bank's willingness to agree, or not agree, to being included - or the fact that the bank would be the majority creditor. Those would be factors before the TD is protected. Not now.

Once the TD is protected, then creditors are included, whether they want it or not. Their only option would be to appeal to the sheriff - who would probably just look at whether or not the debt was a valid TD debt.

As for bankruptcy, your trustee needs to take a closer look at the advice you have been given. If you are in a TD you can't apply for your own bankruptcy.

If you live in Scotland, you don't need to get independent advice before going bankrupt (although it's obviously advisable).

In your case, independent advice looks like a very good idea, given the rather odd advice which is coming from your trustee's office. but, do try to speak to the trustee first, to see if things can be cleared up quickly.

good luck.