trust deed question

[hunka]

Hi guys, my partner and myself have been having some problems with our debts recently and we have some significant arrears - we've just found out we are pregnant too, so obviously I don't want us to be under much more stress.

 

We started thinking about trying for a trust deed, but would like some advice first -

 

we own our own home, now, there isn't much in the way of equity - maybe 2-3k at a push, but with today's market, the house wouldn't sell for valued price. I know in some instances you need to release equity on your home, will wee need to do that?

 

what if we can't sell our house or remortgage to include the equity?

 

what are the chances of getting a mortgage after the trust deed is completed? - we would like to move from our flat to a house at some point

 

what kind of monthly amount would we be looking to pay on roughly £22k of debt between both of us?

 

 

this site has been great to us so far, thanks for the help guys and gals

[bluedogx]

Have you done an income expenditure and calculated your available income?

 

You should get a free valuation done before you see an IP so there's no nasty surprises later. If the equity is under £5000 most IPs will ask you for a payment of £500 and that's the house sorted.

 

Your contribution each month will be your available income but will need to be high enough for a dividend to creditors and fees

[hunka]

Have you done an income expenditure and calculated your available income?

 

You should get a free valuation done before you see an IP so there's no nasty surprises later. If the equity is under £5000 most IPs will ask you for a payment of £500 and that's the house sorted.

 

Your contribution each month will be your available income but will need to be high enough for a dividend to creditors and fees

 

Thanks for the reply bluedog

 

I have about £300 spare per month after my monthly expenses - the missus would probably be slightly lower than that.

 

That's good to hear about the house being safe - what kind of IP fee's are wee looking at?

[hunka]

bump?

[bluedogx]

Sorry. Tending to burned fingers

 

Fees depend on the amount of debt each of you owe and the IP of course.

 

Do not rush into this and pick an IP at random. Try to speak to a money adviser at your CAB or council who will have a list of IPs they use.

 

B

[bluedogx]

Just a thought. If your available income is fairly high you should probably look into the debt arrangement scheme instead.

 

http://www.moneyscotland.gov.uk will give you lots of info.

 

For instance £500 pm over 44 months would pay it off. Not much longer than a trust deed and you wouldn't be declaring insolvency. House won't come into it at all and interest and charges are frozen once approved.

 

B

[Advisorbobby]

Good luck with the Trust Deed, more and more creditors are going down the certificate of sequestration route therefore Trust Deeds are becoming rare. Have you throught about the Debt Arrangement scheme?

[hunka]

Good luck with the Trust Deed, more and more creditors are going down the certificate of sequestration route therefore Trust Deeds are becoming rare. Have you throught about the Debt Arrangement scheme?

 

yeah mate, it looks pretty interesting as at the end of the day, we'll be paying all of the money back. Going the CCA route and charges reclaiming route to get as much of the balances down and then we'll go from there - should be able to get one paid off in a couple of months and we'll go from there.