Hi Johnd,

Unfortunately you are not currently able to decide what route you would like to take. As the Trust Deed has become protected and has not failed, only the Trustee may close it or sequestrate you. The Trustee works for the benefit of your creditors, but has a duty of care to yourself. They should be impartial. Unfortunately contributions are based on free income and are therefore a fair assessment of what you are deemed to be able to afford. The contributions would therefore be exactly the same in the sequestration. A sequestration runs in the same was as a Trust Deed but is a slightly more formal format. It is something that should never be taken lightly. It would be a real shame to end the Trust Deed now given how far you have come. What duration was your Trust Deed agreed for? The sequestration would revert you back to day 1 for another 3 years of contributions. You would be discharged after 1 however. Do you have any other questions?

Hi johnd.

To echo Rob's comments:

1 - You stay in the trust deed. You pay the deemed affordable payment for 18 more months.

2 - If you're released from your trust deed... You choose to become bankrupt and you pay the deemed affordable payment for 36 more months.

As your trust deed started 2 years ago it will vanish from your credit file in 4 years.

If you become bankrupt the clock will start again, you'll have it on your credit record for 6 more years.

I therefore think it makes quite a bog difference what you now choose to do (assuming that you have a choice)?

Your understanding of your relationship with your insolvency practitioner is incorrect. When you appointed them you made them responsible for recovering what you can reasonably afford to pay towards during debts according to the terms of the agreement. You appointed them, you're paying them (as are your creditors in effect), but in accepting the appointment from you the insolvency practitioner also accepted responsibilities to your creditors.

Maybe you would be best served by asking for a breakdown of how they have come up with the new contribution figure and checking whether they have all of your living expenses catered for. You may be able to get them to reduce it a bit if you can put up a reasonable argument.

You dont actually have any issues with being in the trust deed I assume? With 18 months to go I would keep my head down and work towards being debt free at the end of the trust deed.

Has your income gone up?

Paul

I will have to ask to try to renegotiate the increase,my salary hasn't went up,nor my widest,will have to done them later,thanks all for yourinput

I would agree with what has been said previously. Sequestration will start the payments all over again and having came this far already in your Trust Deed it would be a shame.

Contact your case manger and explain that what they have increased your payments to unaffordable. If your unable to agree matters on the telephone then ask for a meeting to discuss things in person. I had a case recently that the client could not agree with my calculations over the phone and after meeting with me he understood how we can to our decision over the financial calculations.

If it does turn out that you can't afford the increase in payments then by sticking firm you may be able to come to some sort of agreement with your Trustee.