Hi Kirstie and welcome to the forum.

How much is currently outstanding on the credit card?

Is the repayment of the credit card having an impact on your ability to pay the Trust Deed?

There isn't anything stopping someone taking out further credit but the issue is their ability to pay this back whilst subject to a Trust Deed. Ideally if you can afford to pay a credit card then you could have increased your payment to the Trust Deed.

It does seem a little strict to say they will terminate your Trust Deed as a result of it.

450 is the amount on the cc,I am struggling financially and have nothing left to the end of the month after I have paid all my bills including my trust deed. What I'm scared off is the terminate my trust deed and then I'm back to square one. I have one year left of my trust deed and that will complete 5 years I have never missed a payment. Can they do this I have now cancelled the card and trying to pay it off at what is affordable .

Thanks

Don't see how it can be breach of contract to actually take out the card? Unless of course in your written agreement it stipulates same.

Hi Kirstie,

It does sound exsessive to me especially if you have maintained payments for 4 years. Under Sequestration it's quite clear about incurring further debts but there is nothing in the legislation for Trust Deeds. Ask your Trustee under what section of legislation you have breached the terms.

I would contact your Trustee and tell them you have cancelled the card and will make the minimum repayments to it until your Trust Deed has been completed. If you required the card for essential items then explain that to them. There needs to be a degree of flexibility for people in a Trust Deed as from time to time unexpected bills come up.

If you are struggling with your payments to the Trust Deed you should ask your Trustee to review your income and expenditure.

Let us know how you get on once you speak with your Trustee again.

Thanks I have done the above and asked to see a copy of where it is stated to which they replied it is common knowledge and they would need to skip the insolvency practitioner to see what they want to do. I'm so worried I took the card out at Christmas to help with kids presents. It was a mistake and tried to explain this I was stupid. I'm just scared this is going to ruin all payments
I have made and my future. Thanks

"Common knowledge".

Nothing in writing, therefore I cannot see how it can be breach of contract (it isn't).

Hi Kirstie

'My Trust Deed said I am in breach of contract'. Do you mean your Trustee/IP?

'they would need to skip the Insolvency Practitioner'. Do you mean contact the IP?

Based on the two questions above, who have you actually spoken with?
Your Trustee/IP or someone in the office, or a third party?

And how did they know you had taken out a credit card?

Surely it could only be breach of contract if you signed something specifically agreeing that you would not take further credit whilst in your Trust Deed. That may or may not be the case - if it is then they should be able to provide you with a copy of this with your signature on.

The whole thing about "common knowledge" is just wrong - it isn't common knowledge at all and if there is such a clause in your contract with your trustee then it should have been made clear to you.

I think David's suggestion to cancel the card is a sensible one. Let us know how things progress?