It is possible that bankruptcy may be the best alternative for you now that your circumstances have changed. However, this should be discussed with your trustee and a way forward agreed. Might your wife be able to find something else to fit in as a second job? It is possible that your trustee will allow a temporary reduction to allow time for this to happen.

I think she should have maybe packed the job in before taking the trust deed out.that way it wouldnt have been included in the deed.how will that affect my trust deed would both need to go bankrupt or just one. And how much would we pay and for how long by being made bankrupt. She only took the second job on in the first place to try and clear debts thanks in advance

Hi Lawjm4

Do you have any equity or other assets to be dealt with?

Mark

No equity and no assets thanks

We have a mortgage but the house has no equity we have never missed a payment would we lose the house

Hi Lawjm4

Sequestration may well be an option as this would not require you to meet a minimum dividend, hence the required payment in the Trust Deed. It would certainly reduce the payments based on the information provided.

You would need to be fully confident that there was no equity to be dealt with as the Trustee or the AIB would require to re review the equity position.

Mark

Would i lose my car its worth £1600 im down as the registered keeper but my mum bought it

Hi Lawjm4

No, there is a £3k limit on this.

Mark

Sorry for allbthe questions would our payments reduce how long would we pay paying for and would we both be made bankrupt thanks in advance

Hi Lawjm4

No problem at all. Please ask away.

There are 3 routes I can see:.

Firstly if you fail to pay the Trust Deed, your trustee could discharge himself and you get all your debts back, freeing you up to petition for sequestration.

Secondly, your trustee petitions for your sequestration, citing non co operation and failure to pay as the reasons (the change in circumstances shouldn't really allow him to do this.

Thirdly the TD continues, the contributions are reduced, but the time period is extended to pick up the missed payments.

If you proceed along the sequestration route, you would start again and your clock ( so to speak) would start from day one again for 36 months.

Mark

Thanks for the advice but dont see how thats going to help us unless the payments are significantly reduced. And starting all over again for 3 years is not a thing i would want to do will contact my trust deed to see if we can get the payments reduced other than that aint got a clue what to do.

Hi Lawjm4

I suppose its between a rock and a hard place and will be wholly dependent on how much you end up paying. At present you are due to pay a further £12720, so the total for 3 years for a seq would need to be less than this for it to be beneficial.

Mark

We have a car on higher purchase not in the trust deed could we just hand that back or would the company force us to pay

Hi Lawjm4

The same rules apply in sequestration as in Trust Deed. There is normally a clause in the HP agreement advising that Trust Deed or sequestration is a default, but I cannot remember a company ever taking back a car.