Scottish and English debt laws are different, so if you are a Scottish resident and have questions on debt, then this is the place to post.

Moderators: TalbotWoods, JaneClack

By mike1y111
#51478 After all the great advice from this board, and reading through posts, i have decided to face my old debts. I am looking to in the next few weeks to see an adviser for a chat, but i need some final advice before i go and dig up my past

- I am looking at remortgaing our house in the wifes name at market value and she will pay me my half of any equity in the property(i am doing this before contacting any of my old debtors + money adviser...is this wise to do especially as i will ensure transfer at full market value to take the house out of the equation?)

-My previous debts which i left behind amount to £60k + any interest that the companies may have charged

-My current debts amount to £50k which i am paying with no problems (so total debts approximately £110k) which i will stop immediately after speaking with IVA

-I am self employed(director of own company) and no real profit in the last 12months of trading, maybe slight loss..i have not taken a wage or any dividends. My wife was in good job hence covering the gap, but she is expecting and she wont be working for a while.

-Looking at properties around i think i will get £10k-£15k for my half of the equity, which i will give my dad to hold for me.

-can i get a trust deed/protected trust deed in my circumstances?

I would like to get a trust deed and pay £310(which i feel i could just about afford) per month for 36months or Pay the £10k lump sum and close Trust deed earlier.

Ideally i would like to continue paying existing debts as normal and put the old debts into a trust deed and pay lump sum 6k(but cant afford to pay any monthly instalments as other loans costing too much.

Are my proposals reasonable that creditors will accept or am i not offering upto the mark. I just want to be clear before seeing an IP so that i can sort out this mess and sleep easy.

Many thanks
By GR
#51512 Not 100% on this, but I recall being told by the IP that ALL debts had to be included in the TD. We had no choice - all or nothing.
By JLP
#51560 As GR says you will have no choice but to submit all your debts into a Trust Deed. The remortgaging option is sensible for your wife to to buy out your share of the equity, but have the uneasy feeling that your IP will want your whole share of your equity(or a fair whack of it), PLUS your contribution........ :? Your IP will be as fair as possible to you but it will not be an either/or situation.

Also I am a bit concerned as to how you can justify your Income to sustain a Trust Deed if you havent taken a wage or Dividend in the last year.Your IP will want to evidence your Income. So wondering how you will manage £310 per month. I understand that your wife has filled the gap, but as you say she will not be working.

Personally I would have an informal chat with an IP before you do anything. You are under no obligation to sign anything, but I would have a word first.