Welcome to the trust deed forum AngelPie.

Would you mind giving us a little background in connection to what has gone wrong with your current trust deed?

Got a break from payments due to maternity leave, then got in a mess and didnt make a payment for some months. (Life and me were a bit chaotic). Things just got out of hand. Hope this is helpful.

Hi AngelPie.

It may well be that some time needs to elapse before a trust deed would become an option again, though that's at the discretion of a Trustee so I suppose there is no harm in asking one once your current trust deed has ended.

Could you tell us about your debts, how much you think you could pay each month and whether you have significant assets such as a home or a car worth more than £3000?

There may be other options as well.

Hi,
Debt is huge, approx 45000. This is a mix of bank loans and credit card debt.
I have no significant assets, when car was valued for trust deed 2 years ago it was £1500.
Because of reduced hours at work and nursery fees, can only afford to pay approx £200 per month.
Hope this is clearer.

Have you looked into the possibility of bankruptcy AngelPie? With a failed trust deed soon to be in the background this would seem to be a possible route that is open to you.

Plans that involve repaying the full amount of your debts (like the debt arrangement scheme or a debt management plan) seem as though they'd take an excessive period based upon your debt total and ability to contribute each month.

Any advice on the best way to start looking at this?

There are some pages on this site connected to bankruptcy AngelPie.
Have a read of the Certificate for Sequestration, bankruptcy and LILA sequestration pages on the main menu.

You may well also want to read the relevant sections on the Accountant in Bankruptcy website which has lots of great information for people weighing up sequestration as an option.

There is no reason you couldn't seek to set up another trust deed, Angelpie, but your creditors might object because of your failure to comply with the last one. As trust deed assistant says, maybe sequestration might be better suited anyway as it should be more affordable.

Just still feel a little unsure about bankruptcy, do you think anyone would consider a debt management plan with the limited amount of income that I've got?

Even if the interest was frozen it would take you almost 19 years to repay £45000 at £200 a month.

Hi Angelpie,
I too am considering my options, i am similar to your position and feel that i will have to go down the sequestration route as i dont think ill have much if any disposable income to contribute to a trust deed for 3 years and a das or dmp etc is out of the question as my debts are £56000 basically which is a combination of loans and credit cards. I just feel stressed out all the time and even though this site is excellent i wish there was a site the same for bankruptcy as this only covers trust deeds.
If anyone can answer this question it would be appreciated, is the expenditure allowed e.g haircut,satellite,insurance etc the same on sequestratin as it is for trust deeds or has anyone heard its worse?

Many thanks.

Hi stressedout.

The experts here are quite happy to answer questions about bankruptcy.

The amount of money that you'll be assigned to cover living expenses is likely to be similar in bankruptcy as it would be in a trust deed.

A friend of mine went bankrupt a few years ago and, unless the rules have changed greatly in that time, she was allowed more expenses to live on for such things as food, clothes, haircuts, etc, by her IP than she had been allowing herself while trying to pay all her monthly payments to creditors. They won't let you have a luxury holiday or anything but she budgeted for everything else well enough to take her kids on a cheap week away so they didn't miss out.

As long as you are completely honest and up front about everything and make every effort to stick to budgets for the duration of your sequestration, it will be over much more quickly than trying to pay all your debts off and you can start living your life again.

Aim to live debt-free, it's exhilarating to be able to do it when you hear of the levels of stress people are under trying to repay debts that could have been avoided.

Thank you so much for all the advice so far.
One last thing worrying me, I have a 12 year old dog who has various medical problems which mean he costs £130 per month through insurance and paying the excesses for his conditions, do you think these costs would be allowed? Rather wait to go the bankruptcy route if not.