If your disposable income drops so that making your td payment becomes impossible uou need to get in touch with your trustee to discuss your options. One of which would be bankruptcy (sequestration).

Whats caused the change in circumstances?

Paul

it was due to a change in my wifes income, do you know if my house would be at risk if the bankruptcy option would be best ?

Is there equity in the house?

Paul

there was only roughly about 4000 ish

You would have to discuss equity but if someone could buy out the benificial interest then you may be safe in the house. Make sure if talking to anyone you get in writing how equity woukd be dealt with.

Paul

ok cheers paul

Welcome to the forum thetwaboyz.

As Paul highlighted already really good communication with your trustee is going to be very important for you now.

Please let them know everything that has changed so that you can work with them to plan what can happen next.

quote:

---

Originally posted by thetwaboyz

hi, i'm just over the first 12 months of a 3yr 8mth trust deed.
my finacial circumstances have changed for the the worse and i am wondering if it is possible to get out of a trust deed, however extreme it may be, or have the payment severely reduced. help ![:(]

---

When I started my TD my monthly income was such that I could afford £270 a month, then I had to leave my 2nd job and the trustee looked at my outgoings and it was reduced to £170. The TD was extended though so whatever is agreed make sure you get it in WRITING (as PD has pointed out)

Creditors agree to the trust deed and expect to achieve a certain return as a minimum,therefore is contributions drop due to loss of incomes etc then it would often be expected to extend the time the td will run so as to allow the return creditors expected.

This isnt always the case and there are always exceptions.

Paul