Hi Carolyn.  I'm sorry to hear this is upsetting you  - please don't beat yourself up about it.  This is more common than you might think and there are many perfectly valid reasons why people can get into problems again after having been in a Trust Deed previously.  

To answer your last question first - you absolutely can set up another Trust Deed if that is what you want to do.  It happens all the time and is nothing to be ashamed about.  Having said that, it might not be the best option for you.  As you say, sequestration might make more sense - if you are reliant on UC to top up your income then it may be that you would be able to justify that you cannot afford to make any contribution towards your debts, whereas a monthly contribution would need to be affordable in order to get a Trust Deed agreed.

An issue you might have though is that there is a higher risk that your car finance provider might terminate your agreement if you go bankrupt, so it would probably be worth checking this out with them prior to making any decision.

First things first - you should go through your budget etc with a debt adviser in order to assess your options further. There are many free sector organisations out there that could help you with this, from your local CAB or local authority money advice team, to national charities.  Alternatively, you are  also welcome to get in touch with us directly via the contact buttons if you would like us to look at this with you initially instead.

Thank you Kevin, I think I will have a think over Christmas and get back to you. One of my issues is that my husband and I separated partly due to me handling credit so poorly and he quite rightly so, doesn’t feel comfortable getting back together if he would then need to use part of his wage to repay my debts ( as they are so large! And he doesn’t have any), he is not on a fantastic wage and when together we brought in around 3k per month ( and we were not entitled to benefits). I assume when in any type of debt repayment plan, repayment affordability is based on the household income and not an individuals income? I just want to get my ducks in a row if we were to decide to try again as I don’t want to lead him down the garden path. Thank you. 

Your contribution to a Protected Trust Deed or to a bankruptcy is only based on what you can afford from your own income.  This is however affected by any other income coming into your household - your husband would of course be expected to shoulder his fair share of the household bills, so it is possible that if he moved back in then you would have higher payments to make to the debt solution as a result.  Under no circumstances should your husband be expected to repay your debts though.