Scottish Trust Deed query

[Anyadvice]

Hi
my Scottish Trust Deed finishes in 6 months, I have to release equity of £28,000, I am paying my Trustee £400 a month disposable income payments. I have been told I can finish this early by a remortgage to obtain the £28,000 and add the remaining £400's into the final sum. I've just looked to remortgage and although I have the equity readily available, it's impossible, partly due to my age and the high interest rate being offered.
What happens at the conclusion of my TD after the full 3 years if by that time I have paid all my payments but unable to raise the £28,000? is the TD extended and do I continue to pay the £400's a month disposable income? I know that in an English IVA if this arises i.e. can't remortgage (and it does more and more) then an extra year is added on to the usual 5 years IVA..

Please, any help?

[slick132]

Hi Anyadvice and welcome to CAG.

I've moved your post to your own thread to save hijacking another.

You'll get advice here soon.

[rory32]

Hi and welcome to CAG.

What happens at the conclusion of my TD after the full 3 years if by that time I have paid all my payments but unable to raise the £28,000? is the TD extended and do I continue to pay the £400's a month disposable income? I know that in an English IVA if this arises i.e. can't remortgage (and it does more and more) then an extra year is added on to the usual 5 years IVA..

12 months is the maximum that the trust deed can be extended for although obviously this isn't going to meet the equity requirement and paying equity over a 12 month period in trust deeds is far from standard.

Some IP's if you can demonstrate that you have really tried to release the equity and just cannot release it will write to your creditors and ask that the equity be abandoned. This would be a decision for your creditors and I must stress that not all IP's would be willing to do this on your behalf.

Really you need to discuss your options with your IP.