Struggling need help and advice 😔😔😔

dell2001

Hi everyone im new to this but really need help!!!!! im currently in a trust deed for all my unsecured debt which I was paying £480 pm this was my husband as well. I have a secured loan on my property which I have fallen in to arrears with and they now want double my original monthly payment now £1068. my trustee has reduced my payments to £200 however im struggling big time I hardly have enough for basic essentials such as heating and food at times. im so depressed I just want to hand my keys back. my parents have been great but theyre not exactly in a position to pay my bills. they have said myself husband and 2 children can go live with them. im also in arrears with my mortgage £968. Please can someone give me some advice. I have an app with citizens advice but I was told because I have a trust deed there wont be much they can do.

On_my_way

Sorry I don't know what a Trust Deed is? I am sure people who do will be along here to help you soon.

Do you know why you have got into difficulties? Are you both earning now? The best thing you can do is fill in a SOA and look very seriously at what you are spending your money on and what you can cut down as you will probably seriously need to cut your spending down to get back on track but you can do that.

Study this forum for tips on all sorts of things especially got to get by on very little money and how to get back on track.

Is your partner fully aware of the situation?

Good Luck, you can beat this without having to hand your keys back!

dell2001

I've cut back on everything. We don't go out or have any luxuries part of me just want to get rid and start again. Yea my husband is fully aware. We have been in debt for years but now it has finally spiralled out if control . My other option was to sell my house myself to pay my mirtgage and loan but I don't have the money for upfront fees. When I speak about leaving our house I actually feel as if a weight has been lifted but it's just funding out how to do it and making that huge step. My house is actually falling down around us dampness condensation leaky roof . Sorry I'm rambling on just need to get it out ��

Sazzie23

Hi Dell, I think a Trust deed is some sort of Scottish mechanism for debt, but I don't know the ins and outs of it.

Maybe Stepchange could give you advice.
Clearly the budget you are trying to stick to is too tight, but I don't know how to get it changed. Perhaps a SOA on here might give some clues as to how realistic expectations are that you could stick with it or not.

Sorry can't give you anything specific to hang your hat on to tonight. Don't give up, there will be a way to get through this.

sourcrates

Hi,
As far as i am aware, a trust deed is the Scottish equivalent of an IVA.
I would assume they will operate pretty much in the same way, what you must do is get in touch with you IP (or whoever runs your trust deed) explain you cant cope with the level of your current payment, they may allow you a few months without payments, in order to catch up, how long have you been in your trust deed ?

If its a few years, and your financial situation will not improve in the near future, you may be able to offer all payments to date as full and final settlement of your TD, whatever your situation, you need to talk to your IP`s office ASAP, to sort this out, doing nothing is not an option.

dell2001

ive been in my trust deed for over 2 years. i tried step change they said there was nothing they could do becaucse i already had a trust deed in place. i don't know how to get out of my trust deed. can i stop paying it so it fails then go to somewhere like stepchannge. its not the payments to them im struggling with its the secured loan like i say they've doubled my payments. ive been thinking of selling my house rather than just handing the keys back. the only thing thtas worrying me about that is the upfront fees id need to pay. please any advice would be much appreciated.

sourcrates

dell2001 wrote: »

ive been in my trust deed for over 2 years. i tried step change they said there was nothing they could do becaucse i already had a trust deed in place. i don't know how to get out of my trust deed. can i stop paying it so it fails then go to somewhere like stepchannge. its not the payments to them im struggling with its the secured loan like i say they've doubled my payments. ive been thinking of selling my house rather than just handing the keys back. the only thing thtas worrying me about that is the upfront fees id need to pay. please any advice would be much appreciated.

Yes you can get out of your TD, like you say, you simply stop paying, and eventually, it will fail.
If you decide to go down this route, i suggest you write to your IP`s office, explaining your situation, and your reasons for failing the TD.

Any payments you have already made will be distributed to your creditors, but be aware, your trust deed affords you legal protection from your creditors at the moment, but, if it fails, that protection ends, and you run the risk of been made Bankrupt, or other legal action may be taken, not saying that will happen, but it could.

Most likely scenario is you will be able to go to SC and propose some kind of DMP, but i think you real problem is your secured loan, you really need to come to a better agreement with this lender, see if you can re-negotiate the monthly payments, will they capitalize the arrears for you ? may be worth asking.

If not, you can always hand back the keys, this has advantages, and disadvantages, if you do this, they will sell the house for the best price they can achieve, you may be left with a shortfall if the proceeds from the sale dont cover the outstanding mortgage and second mortgage, but if thats the only option, it may be a risk you will have to take.

I have done this myself, so i know the pitfalls, i had a shortfall, but was able to include that, and all other debts, into an IVA, as you already have the equivalent, that option for you has passed, and you would still be liable for any shortfall, lots to think about.

dell2001

thank you for your advice. like ive said im going to cab on wed im going to ask them advice. then maybe an estate agent to find out about selling fees. i feel the mortgage and second loan is a rope round mu neck getting tighter and tighter. theres times i cant even putting my heating on cause ive no gas or we have to go to my mums for dinner. my daughter needs new school boots which we simply cant afford so she has to wear her trainers. i just want a clean slate and the way i feel getting rid of my house is the only option, i used to love my house now it depresses me. im so sorry im rambling again. .my secured loan has 12500 left to pay 4500 is arrears they want it paid within the original agreement which is finished next January ive offered them several payments but they refused and said i had 8 weeks to make other offers or the would send me a calling up notice

f0nz

Just a wee note, if you plan to stop paying your trust deed I would suggest you set up a new bank account as your trustee can freeze your account. It is highly likely that bankruptcy would be sought if you fail your TD so have a think about that. If you want to be "free" and you're not bothered about losing your house then maybe that's the best way to go. Any shortfall in the sale of the house will be covered by the bankruptcy so you wouldn't have to worry about that.
On the flip side, you have 1 year left to go before it's all over. If you go bankrupt and an IPA is is requested then you have another 3 years of payments ahead of you, all be them much smaller no doubt (they wanted £450 from my husband and I for a trust deed but only £70 for sequestration) .
If you're really struggling and can't last the final year without making yourself poorly or struggling to meet even your basic costs then it seems to be a bit of a no brainier. Good luck with it all and if you have any questions on Scottish bankruptcy I'm happy to help as much as I can. Next year will be our 6th year and it will finally be off our credit files. We are in a much better financial position and our lives are a lot less stressful for which I will be forever grateful for. Of course there are bumps along the way but all in all I would not change the decision we made.

dell2001

Thank you f0nz I'm going to fone my trustee to see if selling my house is an option (if I can pay the fees) was thinking I could miss my secure loan to pay certain things upfront then the rest taken from the sale assuming it sells. Also I think by doing this I can keep the deed going but if I make a profit it will go straight to my creditors . My heads kinda all over the place just now but I'm fairly sure I want out . If selling is not an option then bankrupcy it will have to be there is noway we could survive a year 😢

f0nz

Hope the phonecall went well and that you have a better plan of what you can/want to do. Hang on in there, you've come really far so don't let it grind you down now! (Hugs)