Debt Consolidation Cap

by Huckabee Tim

Will my mortgage lender find out?
The ‘Official Receiver’ or ‘Trustee in Bankruptcy’ will notify the Building Society, Bank, and any other secured lenders, of his interest in the Bankrupt’s property. This will occur whether the repayments on a mortgage are in arrears or not.

What if my circumstances change?
If you are unable to repayments because of changed circumstances, your trustee in the Trust Deed can request a variation to reflect your circumstances. Likewise if you have good fortune you will be obliged to tell your supervisor.

Will interest and charges be frozen while the Trust Deed is being set up?
No, but any such interest and charges will be included in the Trust Deed if it is approved and becomes protected.Yes, but only if more than 33% of the total debt is owed to him.

What does ‘Discharge from Bankruptcy’ mean?
When a Bankrupt receives a ‘Discharge from Bankruptcy’, they are released from the restrictions imposed on them by the Bankruptcy Order.In cases where there is equity with a property, the ‘Official Receiver’ or ‘Trustee in Bankruptcy’ will consider the option of selling the property and freeing the equity from within it. The released equity will then become part of the Bankruptcy Estate. This applies whether the property is solely or jointly owned.In cases where there is equity with a property, the ‘Official Receiver’ or ‘Trustee in Bankruptcy’ will consider the option of selling the property and freeing the equity from within it. The released equity will then become part of the Bankruptcy Estate.

Can an individual creditor refuse to accept an Trust Deed?
Yes, but only if more than 33% of the total debt is owed to him. Once the deed has become protected, all creditors are bound by law to accept the terms of the deed.By reducing the amount of debt you owe, known as your debt-to-income ratio, debt consolidation can help to make you more appealing to the lenders. Also, if you are behind in your debts, the re-aging of your accounts will show you as current once again. Good credit, in most cases, is a by-product of our program.Yes! The foundation we represent is not required to report our clients to any reporting agency and never do. By reducing the amount of debt you owe, your debt-to-income ratio improves which helps improve your credit.

Can a creditor take action before the Trust Deed is protected?
Yes, but you can apply to the courts for an Interim Order to stop any of your creditors taking further action until the outcome of your creditors meeting is known.

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