As far as am aware you cannot change your trustee as the trust deed is a legally binding document between you and your trustee.... Am sure the experts on here will explain in more detail but you cannot switch Trustee.......

Hello Feesyfi and welcome to the forum.

When you enter into a trust deed there is nothing to stop to taking on further credit although it should be considered if you can afford the repayments as you cannot add further debts to an existing trust deed.

The advice is correct from your trust deed company in that you should try and make arrangements with these companies.

I do not think it is possible to change trustee part way through a trust deed. Usually you will be required to make the 36 payments so the trust deed will be extended, although this should be confirmed with your trust deed company.

Hi feesyfi

Unfortunately you can't change trust deed companies. The only ways to deal with the additional debts would be to seek a reduction in your contribution to assist financially with the other payments. Your Trustee could also look at sequestration which would start you from 'day 1' again and include the debts.

Mark

Thanks for your responses. What would sequestration involve?

Your trust deed would need to end before sequestration is open to you feesyfi. It's therefore something you'd need to work with your Trustee to enable (assuming they are prepared to).

In sequestration you'd be expected to pay what you can afford towards your debts for a period of three years, much like a trust deed. It would include all of the debts that you have now, including the new ones.

Are you a homeowner or car owner? If so, how much equity would there be in each?

People in certain professions may find that sequestration is a problem for them.

Thanks. I don't own any property, the house is in my husband and my dad's name - all the debts are my own, mostly from before I met my husband. My car is a lease car that my mum got for me and I pay her, so no equity available to me at all.

Obviously my husband is linked to me via our credit files - would my sequestration affect his credit rating also?

I'm a secretary so don't think my job would be affected by sequestration but I am also going to be on maternity leave from the end of the year so money will be even tighter 🙁

THanks again,
feesyfi

Hi feesyfi.

If you have no major assets and your job will not be affected bankruptcy doesn't seem to be a major issue for you.

The big shame will be that if it's calculated that you have some surplus income the three years of payments will start again.

Bankruptcy is only an option though if your Trustee decides to, or agrees to, end your trust deed.

Your husbands ability to borrow may be affected if you have any type of joint financial arrangements, though probably in no worse way than the trust deed will have already initiated.