Agreement where there is little or no equity
Where the trustee has obtained a valuation of the property and there is very little or no equity, they can agree to relinquish their interest for a nominal fee, currently around £550. This is done through an agreement in Form 1B.
The fee can be paid by the client at the end of the trust deed, or a third party can contribute during the term (see
here).
These options can be discussed with a trustee before the client signs the trust deed, one of the main advantages of a trust deed over bankruptcy (although this can also happen if you appoint your own trustee in bankruptcy).
Failure to comply with the written agreement can lead to the trustee cancelling the agreement and proceeding with the sale of the property.
If the client contends the sale of the property, the trustee must apply to the sheriff to sell the property
If your client has equity in their property, take advice first from an insolvency practitioner, it might not exclude them from an insolvency option.