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caza
| 13-07-2008 12:27 PM |
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Joined: 13 Jul 2008 Posts: 5 | Hi I had been recently in a trust deed which has failed due to my circumstances. I have spoken with my trust deed to try and avoid this but they are intent on doing this. I am very confused re trust deed and sequestration as to me they both look the same. I am married but joint own the home with my mother, this house was purchased from the Council and only 1 year after i was able to put my name on the title deeds. At the time signing the trust deed there is zero equity (prob still is) my debts amount to £37k. I have 3 secured loans on the house which i am still paying and managing. Will i lose my home and what happens from here. I would rather be in my trust deed than bankrupt and feel that i have not been given a change to give my side as to why my payments failed. I work 2 jobs and after i pay out everything there leaves very little to live on. My husband supports my living costs each month. How is this looked at when they go through my expendure, will i need to pay back money. Important what happens to the house as i am getting conflicting information. 1. trust deed adv that would be free in 1 year and as there is no equity in the house this would be mine. 2. told that would be free in 1 year but house would be sold Please tell me what to expect Many thanks |
| paladin | 13-07-2008 06:50 PM |
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Joined: 06 Jun 2007 Posts: 77 My Profile | Hi Caza I you don't have any equity in your house it is very unlikely that you'll be asked to sell the house, particularly if the house is in joint names. Joint names means that you own half the house and consequently half of any equity. In considering whether to sell the house or not the Trustee takes into account the costs of selling a house, marketing and fees etc as well as the equity. A Protected Trust Deed lasts for 3 years, although it can be over and done within 6 months provided the creditors accept a full and final settlement. Personal bankruptcy, sequestration in Scotland, means that all your debts will be written off after a year. You may lose your house although there are situations which I have described above where you may hold on to your house. The main differences between sequestration and a Protected Trust Deed are duration, occupational restrictions and an up front court fee (sequestration). If you don't have any equity in your house, especially if its in joint names, then sequestration may be your best option, it clears the debts quickly which means you can start rebuilding your financial life quickly. Hope this helps Paladin |
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caza
| 14-07-2008 12:51 PM |
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Joined: 13 Jul 2008 Posts: 5 | Phewwww thanks for this advice as i have been very worried since my trustee told me this. I have been reading up on sequestration and it says 12 months or 3 years am i taking it the 3 years if they find that you have money left over to pay towards your debt. Also how is all of this decided do i get a say! 2 years ago i had no equity in my house and i dont think much has changed will they still come and re value my house or do they take the details that my trustee holds. So really after 1 year this is it over and done with and they wont at a later date try and sell my house or still have an interest in it. Also to officers come to my door and do i need to be in court for this my trustee said that i will recieve further details from them and i didnt need to come to court unless i was contesting. Sorry if i keep asking the same questions over and over again but this house is my mothers and i just cant lose it. Thanks |
