Hi Cathy

If you are unable to maintain the payments then you should speak with your trustee. The options in the circumstances are the trustee may discharge himself and give you your debts back. This would allow you to petition for bankruptcy.

The other option would be for the trustee to petition for your bankruptcy.

Mark

Thanks mark for replying and giving me some advice I will find out on Monday when I speak to my trustee and I shall report back 🙂 not letting it stress me out ! If I have to go bankrupt then so be it ! Thanks again 🙂

Hi Cathy,

It's good to hear that you are open to the prospect of Bankruptcy. Many people can struggle to get their head around this but if your unable to support a suitable payment to your Trust Deed then this is an option that can mean a payment is set at a more affordable level or even no payment at all depending on your income and expenditure.

If you don't own any assets i.e. your own home, an expensive car then it should be fairly straight forward. Even if you do own your own home, it can still be fairly straight forward.

As Mark said, speak with your Trustee to advise them of your difficult position. The last thing you want to do is struggle to pay the Trust Deed and get deeper into financial difficultly.

Let us know how you get on and if you need any further advice.

Bankruptcy is pretty much the same as the trust deed as assets, contributions etc will be treated the same.

The main difference is that you no not need to achieve a minimum dividend like the trust deed.

I'm sure your trustee will guide you through the process, however we're always here to help if you have any questions.

Mark

How have you been managing to make your payments so far if you are making a loss, Cathy? In fact, how are you managing to cover your living costs? Do you rely on a husband/partner?

Thanks everyone for your replies ! To the last question yes my partner and father have been helping me out a lot .I spoke to my trustee and she was very nice and we agreed that I should stay in the trust deed now as I would have to start all over again .my business suffered last year due to myself having a lot of time off work ,I spoke to my trustee and we agreed that I would getting business moving forward once again thanks again

Good luck Cathy - I hope business picks up for you. As long as you are confident that business will pick up, or that your partner/father will continue to help you out if it doesn't, then fair enough.

If not, then you may just find yourself still having to go bankrupt but even further down the line.