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stefantuk
| 26-02-2009 09:46 PM |
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Joined: 26 Feb 2009 Posts: 4 | Hi, i have been on a Debt Management Plan for 13 months now and still have 12 yrs to go, i have asked for a trust deed but said i had too much equity in my property , i cant face another 11 yrs of worry and stress , my debt is £40k and i would probably have about £18k left over if i sold the property, would my creditors take the £18k as a full and final payment ? Or after i have moved into rental accom apply for a trust deed then either keeping the proceeds or paying some back? Would they find out i had money in my bank ? please help |
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| paladin | 26-02-2009 10:25 PM |
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Joined: 06 Jun 2007 Posts: 240 My Profile | Hi stefantuk A DMP is really only a short term solution, certainly not lasting over 12 years and even then there are no guarantees that your debts would be cleared in that timescale as interest would increase the final amount owed. If you entered a protected trust deed then the IP, who administers the PTD, would seek to release the equity in your home. Three years down the line your debts would be cleared. It is also a consideration to write to all your creditors offering a pro-rata amount of what's left after the sale of your house, a 45% return may be just enough for the creditors to consider your offer. If you are going to follow this route then I would recommend that you would ask the creditors to write off the rest of the debt and mark the account as satisfied. "Would they find out i had money in my bank ?" Yes! Don't even think about selling your house and hiding the profits from the sale. It is an offence to do so and would either result in a term in prison or a fine or both. The IP does various searches just to make sure that nothing is being hidden from them - they know all the tricks in the book. If you want any more help or advice just post back - we do try help! P |
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stefantuk
| 14-03-2009 04:10 PM |
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Joined: 26 Feb 2009 Posts: 4 | i have asked about a trust deed, i was adviced a could prob do a 1 day or 6 month trust deed but would need to remortgage at the start and release about £9k from my equity. After a week i am still waiting to see if i can get a remortgage but looks like i probably wont, What other option do i have if i cant get a mortgage? enquired about secured loans but that doesnt seem to be an option for me as well |
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stefantuk
| 17-03-2009 10:38 PM |
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Joined: 26 Feb 2009 Posts: 4 | i have got an AIP for a remortgage to release £10k , would i be better writing to creditors offering a quarter of my debt and seeing if they would accept this ? or have to go onto a PTD ? |
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| paladin | 17-03-2009 11:17 PM |
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Joined: 06 Jun 2007 Posts: 240 My Profile | The thing is that you probably won't be able to release any more equity from your house even if it was to be sold at auction. So if you were to enter into a Protected Trust Deed about £5k of it would go to the IP firm as fees. The creditors know this so they may be more amenable to accepting your offer. Your could always write to your creditors offering the £10k as a full and final settlement. Back up what you are saying with a SOA which has reasonable living expenses together with the current value of the house and you might just get accepted. Let us know if you need any help with the letter. P ps see here for DIY debt management |
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stefantuk
| 28-04-2009 10:14 PM |
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Joined: 26 Feb 2009 Posts: 4 | hope fully my remortgage will be approved next week, if i get the full valuation of my property i should have about £13k to either pay off my creditors (i owe about £43k ) i could try and sell my car for about 3500k and pay that back as well. I am worried that not all my creditors will accept the low amount i am offering as a full and final seetlement as its only about a quarter i own. The other option is being accepted for a protedted trust deed but my mtg payments will go up to £570 a month so may only have about £160 to £200 a month to pay back into trust deed is that enough ? i was told they need at least 10 p in the pound to pay back ? I am so confused, desp and worried Help Ps I will keep everyone informed how things go when i get a solution, everyone needs help and advice |
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