In a bit of bother

[Training Shoe]

I have debts of roughly 40k and have enquired about trust deeds. My problem is that i had a 2k overdraft with my previous bank and i always used it up each month. I've now done an income and expenditure sheet and i pay over 2k per month before any of my unsecured debts are paid. This means that i cannot afford to pay a trust deed of 230 per month as i have no money. I've been told i do not qualify for bankruptcy as i'm not apparently insolvent, i'm at a loss to what i should do.

 

Can someone please advise?

[IdaInFife]

who has set that you need to pay £230 per month?

 

give national debltine a call 0808 808 4000

 

do you own your own home?

 

do you have assets over £1000?

 

£2000 seems a bit steep is this a mortgage and car payments?

 

Ida x

 

and welcome to cag

[Crocdoc]

If you don't own property and have few assets, simply default on the Trust Deed and the Insolvency Practitioner should Bankrupt you anyway.

 

If you have property or assets, come back on this one.

[Training Shoe]

who has set that you need to pay £230 per month?

 

give national debltine a call 0808 808 4000

 

do you own your own home?

 

do you have assets over £1000?

 

£2000 seems a bit steep is this a mortgage and car payments?

 

Ida x

 

and welcome to cag

 

Thanks Ida

 

I have a mortgage at 500 per month with an alleged 15 equity in it

Council tax 118, monthly shopping including shampoo & cleaning goods is over 600, gas & elec is 120, diesel is 250 a month, phone is 60, sky is 60, insurances etc etc brings it over 2k. My household income is around 2k a month, everything above is over 2k and i have someone who wants me to sign a trust deed 200 over 3 years and 300 over 2 years for the equity.

[veryweary]

Trust Deeds aren't suitable for many people and I would avoid them like the plague. the only person who mainly benefits is the insolvency company who manage it. You will have to release up some of the equity in your house.

 

As your credit record is probably defaulted it means if you can afford the extra mortgage payment to release the equity you'll pay a higher interest rate on it. To me it's like throwing more money away on something you can sort yourself.

 

It's possible to set up DMP's for free with either CCCS or Payplan, but you'd probably need about £100 per month to divide up amongst your creditors for them to take you on. Gives you some initial breathing space.

 

Even if CCCS/Payplan can't take you on they'll send you their free advice pack with template letters to send to all your creditors with offers of token paymenets.

 

You haven't said what your debts are ie credit cards, loans and whetehr they are secured or not. For your unsecured debts have you checked they are enforceable by sending CCA requests?

 

Don't despair we had debts higher than that 6 years ago. We're still here , haven't been taken to court - yet, still live in our house, make really small token payments to some creditors, and have now found we have about 6 unenforceable account which are all in dispute and we don't pay anything to at the moment:-).

 

Don't worry you'll get all the help you need from this site

[Joemcm35]

Hi Training Shoe!

 

In your post on 21/10 you stated " cannot afford to pay a trust deed of 230 per month as i have no money" but 23/10 you state that "i have someone who wants me to sign a trust deed 200 over 3 years and 300 over 2 years for the equity".

 

Your financial overview is £2k of income and £2k of expenditure.

 

Accordingly, an insolvency practitioner (IP) could not sign you up for a trust deed as you do not have any available income once you have paid your essential expenditure.

 

Even if you had sufficient disposable income, an IP cannot allow you to 'buy out' their interest in your house equity over 36 payments. Such a buy out can only be paid by a third party (ie relative or friend).

 

With a suggested equity of £15k, it will be unwise to enter into a trust deed or bankruptcy as you will lose your house as that would be sold to realise any equity.

 

As for a debt payment plan, it would be neceassary for you to have disposable income in order that a money advice service (ie a CAB) could submit a payment offer to your creditors. That being the case, you will have to adapt your budget to reduce your expenditure so as to free up money for paying to your creditors.

 

I would suggest that you contact your local CAB or your local council money advice service for advice and assistance.