Hello again juliej1612.

You shouldn't be asked to pay an amount into a trust deed that you cannot afford after your reasonable expenditure has been taken into account.

If you are still down by £200 per month (and nothing has compensated for that) it would seem that the payment you originally agreed simply isn't viable any longer.

Having said that, it is common where a trust deed payment has to be reduced that the term is extended to compensate so that creditors receive the return they originally accepted.
If a significantly longer term would be the outcome of extended reduced payments I guess you (and the trust deed provider) will need to weigh up whether a trust deed remains an appropriate solution for you.

Are you a homeowner? If you are, is there equity in your home do you think?

Thank you that is what I have been thinking lately as since I started TD my income reduced by around £300 although payment stay same! I changed job as I had to sell car as could not afford repairs and although better paid I did have to travel 35 miles to work so after sale of car (which proceeds went into TD) I found work in the city centre. So was not a voluntary move. It was needs must. Anyway no I do not own home I have rent from council. I also at beginning year started to receive benefits from rent and council tax after WA advised this may help as I was struggle so much last year as was permanantly on reduced payment. When benefits were awarded I never see as they doubled my contribution! I also found had been overpaid in this the money paid back TD took. Now after benefit review this was wrong and I am now owe them! Which TD know also as sent paperwork 2 weeks ago but still no response (no surprise there) This month I have extra to pay and another standing order set up for what owe. But nothing and I am left with the grand sum of £20 i think which has to last till week Tuesday! I am try not think about although has been same situation every month these days [:(] and I just don't know what my next move be with TD

Hi again.

Can I suggest that you ask for a copy of the "income and expenditure" statement that is currently being used to assess your trust deed contribution?

You'll be to check the accuracy compared to your actual figures and request a correction if they require updating.

If it appears that a decent contribution isn't viable I'd expect that you and the company concerned may conclude that bankruptcy is now a more relevant option. So long as your employment will not be jeopardised it seems you would have little to fear from that.

I asked for this a month ago. No response there yet although one thing I have done since advice on here is to have kept all communication e-mail in a folder.

And also e-mailed about a week ago same thing! Forgot that. Head is in a bin at mo with it all!

And bankruptcy has been mentioned although I know nothing of what this entails! It was mentioned before to WA after advice here. The reply got from TD manager was this was mentioned before TD started but I wanted to pay what could although circumstances changed lot since the beginning 2 years ago. Thanks and hear from you soon again.

It's a very good idea to keep a paper-trail juliej1612. Keep asking, it's a perfectly reasonable request and one that any trust deed provider charging their client thousands of pounds in fees should be able to promptly comply with.

Bankruptcy is in many ways similar to a trust deed. A Trustee is appointed who will work to try and recover funds for the creditors if you can afford to pay either through surplus income or assets that you own. Payments, if affordable, will continue for three years.

The big difference is that a trust deed requires a reasonable level of payment each month, whereas in bankruptcy if there is no surplus income there is no payment into the bankruptcy.

If your circumstances have changed to a point where little or no monthly payment is possible (or at least not enough for the trust deed to remain a viable prospect) bankruptcy may therefore have become more appropriate.

It cannot happen without your trust deed having ended so I think the thing to do right now will be to keep pushing your trust deed provider on the issue that you cannot pay money that you do not have.

Reading back over your posts I notice also that you're a good way through your trust deed already. As the change in your circumstances is out of your control and as you are a fair way through I wonder if there is some discretion that could be applied in connection to the trust deed payment from here. Hopefully that's something Mark, Kevin or Shona could comment on.

Hi both

It's a good point re the early winding up of a Trust Deed & something I asked our regulators a couple of years back. Very generally I put the scenario that if 34 of the 36 payments had been made & there was a dramatic shift in circumstances, what should a Trustee do. Sequestration was the answer as the proposal had not been completed.

Personally I would disagree with this answer as the Trust Deed is creditor driven and they should be given the opportunity to decide.

Your point on bankruptcy is a good one. If the Trust Deed is no longer viable and there are no assets as suc then this may well provide the solution.

Mark

Morning, thank you for that and yes I am a good way through TD. I will wait and see what the others think.

ok what I am going to do is try make contact again over the subject of a new income expenditure with WA (3rd time lucky)although to be honest it is of importance and I should not have to chase. I will mention this. I will add that only since new TD manager appointed at beginning year have had difficulties. Always previously promt and understanding response to my contact. I have 16 months left TD and would like to be able to see it through. Managably of course! I am going to try and forget about till Monday and try relax a bit enjoy weekend. Thanks for advice and will keep you posted. J

Hi julie.

Seems that your trustee is missing the point.,what i did in similar circumstances was i wrote to the trustee explaining my change in circumstances.Always keep a copy of any letters you write.

I told him that unless he reduces the payments then i would cancel the direct debit and he could do what he wants about it.
Sometimes direct action is the only way to get things done.

Good luck

Thanks Peter, your comment much appreciated. And I have just written an e-mail along that lines. Also mentioned lila sequetration as advised on here. My income actually falls below this level. Sure I get quick response this time! And I do keep copy of all communication. Julie

I have communication! That didn't take long! I think the part would cancel direct debit because I don't care anymore might have helped (thanks for that Peter) Anyway response is yearly review done but TD Manager await being signed off by Trustee, comments in my e-mails on my difficulties have been taken into account and will be try to lower my contributions from this month going forward and will be give me call to discuss later in week. Will keep you posted. J

Hi Juliej1612

I hate to appear controversial, but I disagree with a lot of what has been said regarding your situation. If you were in a Trust Deed with my firm and your situation changed, you would not be penalised if it was not through your own fault, ie, your tax credits being reduced was outwith your control, therefore we would accept a reduced payment, regardless of where you were in your Trust Deed. In your case, why would would want to start all over again when you are so far into your Trust Deed. If you are working, then you will be asked to make a contribution in your bankruptcy, and this payment will last for a further 3 years!!! The Accountant in Bankruptcy made it clear that regulation 19 ( which allows a TD to be finished without the debtor being discharged), should only be used if a debtor was not co-operating with his/her Trustee,and obviousley you have been co-operating. There is a difference between debtors who 'won't pay' and ones 'who can't' pay.
In a Trust Deed a proposal is put to creditors, and hopefully they accept. The Trustee aims to make sure that the proposed dividend is met, but things do change in life, and as such sometimes the Trustee has to go back to creditors and explain why the proposed dividend was not met. I have never know a case where this problem for creditors. This is entirely down to your Trustee.... fight this one, and let me know how you get on.