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Craig1970
Just Joined

1 Posts

Posted - 23 December 2017 :  13:59:13  Show Profile  Reply with Quote
Merry Xmas everyone I'll try to keep this short and simple.

Just this last month finally out of a TD after 6 long years and can now face the future financially.

Just one small thing that concerns me that I think could come back to bite me but I'm not sure.

When I took out the TD in April 2011, I owned a property with 2 standard securities [Halifax and First Plus] and at the time I was approx 30,000 in negative equity with some arrears on both accounts.

Things were so tight at the time I was unable to get the 500 together to allow the Trustee to waive their interest in the property.

However I struggled on for another 18 months but the mortgages were crippling and I decided to simply hand the property back to the Halifax before the inevitable happened anyway.

I should also add that I was married and my wife was joint on the mortgages but had not lived at the property for a year by the time the TD was taken out as we had separated.

About the same I signed the TD she went for sequestration and this is now finished also. At that point our financial affairs became totally separate and during the course of the TD we divorced.

The Trustee was kept abreast at all times and agreed with the disposal of the property as long as I continued to maintain my contributions which I did. Ultimately we ended up with approx 60000 debt after the property was disposed of. Shortly after this I was written to by Halifax solicitors formally requesting payment of the debt but I simply pointed them to the Trustee and never heard form them again.

I was told by the Trustee at the time but never in writing that when a debt became unsecured during the tenure of the TD, it simply ranked as a claim on the TD like all other creditors, by virtue of the fact that the debt existed and the negative equity and arrears were not hidden at the start of the TD.

To my knowledge neither of the creditors involved submitted a claim (and in fact due to the very small dividend paid out to creditors their recovery of the debt would have been minuscule anyway).

I am now in rented accommodation and hold no major assets.

So my question is this. Can a debt that was secured during the TD and became unsecured be pursued post TD; and if so in what circumstances?

Sorry for the waffle but wanted to check I had covered all the circumstances.

Kind regards

Craig

TDA (Debt Adviser)
Trust Deed Expert



12536 Posts

Posted - 23 December 2017 :  20:18:18  Show Profile  Reply with Quote
Welcome to the forum Craig1970.

Congratulations on completing your trust deed.

From what you've written I don't think you have anything at all to worry about. Your trustee's comments at the time seem entirely correct.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    

Edited by - TDA (Debt Adviser) on 23 December 2017 20:18:43
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