Hello Chesterton35 and welcome.

You need to honestly answer the questions that the lender asks you when you apply.

You don't need to inform your trustee.

Please be aware that, in the future, your trustee is unlikely to agree to make any allowance for you to repay new debts.

How do you plan to repay the debt, Chesterton35? As Trust Deed Assistant says, it is unlikely that your Trustee will see this is a legitimate household expense unless it is sanctioned by them first as being necessary (eg car required for work)

Hi, this would be paid back through payroll deduction as my employer supports a local credit union and provides this service.

I would run it by your Trustee first, as they will undoubtedly see the deduction on your payslip at review time. These are funds that could be being made available to the creditors in your trust deed so there would need to be a good reason why they shouldn't be.

Hi Chesterton35,

Is there a particularly pressing reason that you require a loan from the credit union?

As Kevin has advised there would need to be a very good reason for you to require a loan whilst in your Trust Deed and your Trustee would need to make a decision on this. Things like a loan for a car if it's required for work purposes can be allowed but it all comes down to affordability and ideally this shouldn't impact your Trust Deed payments.

If for example the loan was for a holiday or non-essential home repairs then I think it's unlikely that your Trustee would allow this.

It's something which is an individual thing and each Trustee will take their own view on this. With things like this it's always best to run it by your Trustee to avoid any potential problems later on down the line which could delay your discharge.

Hi Chesterton35

This is a question which comes up quite a lot and I think the confusion is due to the restrictions in obtaining credit in sequestration. This does not apply in Trust Deeds.

As mentioned before, there is no issue as such other than any further borrowing affecting the ability to maintain the contribution as being an allowable ongoing expense.

Mark

Hello, The loan is to be used for roof repairs (shared costs with other flats in the block) so its not something that can be put off much longer. Thanks for the advice, very much appreciated

You might find Chesterton, that if you speak to your trustee, they maybe able to assist with some deferred or reduced payments since it's for essential works.

That's an excellent point SkintAlly.

If you haven't already it's well worth talking to your trustee about this type of unexpected and possibly non-optional expense.

Thank you for that advice SkintAlly, will run it by them and see what comes from that. Cheers