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| The independent answer to your debt problems | login join |
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Boohoo
| 04-09-2007 09:09 PM |
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Joined: 04 Sep 2007 Posts: 1 | I have a home visit this week re Sequestration/Trust Deed. Cannot eat cannot sleep with worry. I have mortgage and a second charge neither which have defaulted and are up to date. There is no equity in property in fact if house sold there would not be enough to pay off mortgage and 2nd charge approx 10 grand short. Does anyone know what will happen to my home I have 25 grand of unsecured debts that are the problem. If anyone has an answer please let me know1 |
| DW George | 04-09-2007 11:24 PM |
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Joined: 01 May 2007 Posts: 158 My Profile | Hi Boohoo. What happens to your home will depend on how much disposable income you have and who the creditors are. If, over a three year period, you can return a satisfactory dividend to the creditors then your house will be safe. What will happen at the end of a Trust Deed is that your house will be re-assessed and any equity may be required to be realised. Your IP will talk you through this. Dividends are calculated by multiplying your monthly disposable income by 36, subtracting the IP fees and then dividing the total figure by the debt. The final figure will then be multiplied by 100 to give a percentage - the dividend. Fees can range from £3k upwards depending on the complexity of the debts. Worked example Some creditors are demanding higher dividends. Your IP will be best placed to advise you the likelihood of your Trust Deed being successful. I hope I have been clear about what may happen. It is quite difficult to give definitive answers without knowing all the financial details. You have taken a positive step in dealing with your debt problems by organising to see an IP and by posting here. You make make sure that you are happy with the IP. Ask questions of them. After all they will be managing your finances for the next three years. Good luck. If you have any other questions then just post here. We'll try and help George |
