Nearly 6 years ago I signed a trust deed, I was advised that this would be the best route to take as I could not pay debts that had mainly been incurred as a result of my husband entering into an ill judged buiness arrangement. I signed the trust deed before a valuation was carried on the IPs instructions. In my opinion the valuation was considerably over the market value of the house and I argued this but nothing was done at this time i have continued to pay the agreed amount every month. At the end of 3 years I was told that the IP still had an interest in the house, at that time I gathered evidence that the house had been overvalued by showing the prices other houses in the street had been sold for at the time of valuation and also information showing over valuation based on the Bank of Scotland Scottish Price Index and the Nationwide house price calcullator, in addition I paid for a chartered Surveyor to carry ou a retrospective valuation, all this information confirmed thay the value of my house was approximately £106000 and not £123,600. (I have an interest only mortgage of £95,000). I received information back from the IP saying that additional sums were still required to allow the equity to be bought out. That was in March 2010 and I'm still paying my monthly contribution. I have no way to raise this sum and I cannot remortgage due to my credit rating, I have lived in the same home for the last 16 years and have 2 children to look after, I decided on the trust deed as I was told that I could stay in my home. After all this time and worry can they still force me to sell my home and end up homeless? Also my husband and i have been separated for 7 years and although his name was not on the mortgage he considers that he still has an interest in the equity of the house if I sell it, I'm not sure how this affects the situation? Can anyone give me any advice about what I should do. From what I can see from the statements my IP sent me, (not had one of these for a few years) it shows that all I'm really doing is contributing to the IP's annual fees. A solicitor suggested going to see an Advocate that specialises in these matters, but I'm sure that will cost thousands too?
Without knowing the full terms of the Trust Deed it is difficult to comment as the process CAN be extended beyond the normal 3 year period. However if you want to lodge a complaint you should contact the following.
If the client thinks that the trustee's actions are unreasonable or contrary to the law, s/he could make a complaint to the company that the trustee works for and/or the professional body that the trustee is registered with. If the trustee is an accountant, complaints should be made to:-
91 Institute of Chartered Accountants of Scotland
21 Haymarket Yards
Tel: 0131 347 0100
Fax: 0131 347 0105
92 If the trustee is a solicitor, a complaint should be made to:- The Law Society of Scotland
26 Drumsheugh Gardens
Tel: 0131 226 7411
Fax: 0131 225 2934
The Accountant in Bankruptcy (AiB) has a general power of supervision and audit of protected trust deeds. The AiB can investigate complaints about trustees but will expect the client to have raised her/his concerns with the trustee and their governing body first.
In many cases the Trust Deed is extended in circumstances wher the debtor owns a property in order to buy out the equity without selling the property. There are a few other examples relating to assets.